LAWS(KAR)-1982-8-10

RAJA CHARITY TRUST Vs. STATE OF KARNATAKA

Decided On August 03, 1982
RAJA CHARITY TRUST Appellant
V/S
STATE OF KARNATAKA Respondents

JUDGEMENT

(1.) This petition by Messrs. Raja Charity Trust, which is the sole selling agent of Messrs. Southern Asbestos Cement Limited, is directed againat the proposition notice issued in accordance with Section 12(3) of the Karnataka Sales Tax Act (hereinafter referred' to as 'the Act') and the Rules framed thereunder. The notice is produced at Annexure-E.

(2.) The first respondent-Assistant Commissioner of Commercial Taxes (Assessment) I Circle, Bangalore, has declined to accept the annual returns filed by the petitioner for the year 1980-81 and has proposed to make a best judgment assessment of the total and the taxable turnovers of Rs. 4,27,77,188.30 and Rs. 3,27,66,549.46 respectively. However, there is also intimation to the petitioner .which is a registered dealer that the concessional rate of tax claimed by the assessee, under the Notification No. FD 142 GSL 79 dated 27-12-1979 will not be allowed as the petitioner is not entitled to as an agent.

(3.) It is contended for the petitioner that in the light of the decision rendered by this Court in the case of Bagalkot Udyog Ltd. v. State of Karnataka (1), the benefit is available to agents also and therefor the, proposition is without the authority of law of erroneous understanding of the law, apparently following the advice tendered by the Finance Department to the Commissioner of Commercial Taxes in Karnataka.