ASSISTANT COMMERCIAL TAX OFFICER Vs. N N JARIWALA

JUDGEMENT

(1.) This Writ Appeal is presented by the appellant against the Judgment of the learned Judge allowing the Writ Petition holding that the compounding fee that could be collected from the 2nd respondent was only Rs. 1,000/- and not Rs. 2.000/- and therefore the appellant should refund the balance of the amount.

(2.) The brief facts of the case are these: The respondent is carrying on the business of purchasing and selling silk fabrics. His business premises was inspected by the Assistant Commercial Tax Officer, Intelligence on 5-8-1987, After verifying the stock of art silk and pure silk fabrics the Officer was of the view that the respondent had committed an offence punishable under Section 29(1)(a) of the Karnataka Sales Tax Act (for short 'the Act') and a notice to that effect was issued on 26-9-1987 (Annexure-B). Subsequently having regard to the objections raised by the respondent, a notice dated 7-11-1987 under Section 29(2)(d) of the Act was issued. It reads:

(3.) The sales turnover of silk fabrics and art silk fabrics arrived by adding gross profit at 10% on purchases i.e., Rs. 14,800-00 and Rs. 1,200-00 respectively. So the suppression of sales turnover of silk fabrics and art silk fabrics to a sum of Rs. 1,63,800-00 and Rs. 13,200-00 respectively. The total suppression of sales of silk fabrics and art silk fabrics is arrived at Rs. 1,76,800-00. The tax liability on sale of silk fabrics @ 4% is at Rs. 6,547-20. In addition to the above suppression the following irregularities were noticed, which amounts to contravention of , Section 26 of the KST Act, 1957 read with Rule 26 of the KST Rules, 1957.