SOMANATH INDUSTRIES Vs. STATE OF KARNATAKA & ORS.

JUDGEMENT

(1.) This petition by M/s. Somanath Industries who carry on business of milling rice and converting other grains to flour is really directed against the notice of demand issued which is produced at annexure-A to the petition. But the prayer in the petition is to quash annexure-G, which is a letter issued to the petitioner Mills by the 3rd respondent Commercial Tax Officer merely setting out the grounds on which certain benefits of exemption could be enjoyed by the petitioner.

(2.) However, Sri. B.V. Katageri, learned Counsel appearing for the petitioner, at the time of submitting arguments stated that that is a mistake and the real grievance of the petitioner is against annexure-A notice of demand for Rs. 21,580-28 being the sales tax due for Aug., 1982 in accordance with the return submitted for that month by the petitioner under S. 12-B (1) of the Karnataka Sales Tax Act.

(3.) It is not disputed that the 3rd respondent Sales-Tax Officer has jurisdiction to issue such notice. The only contention advanced is that the Department itself is due to refund a sum of Rs. 30,000-00 to the petitioner and therefore they could not issue the demand notice at annexure-G to the petition unless they refunded all the amounts due to the petitioner. Unfortunately there is no such provision in the Karnataka Sales Tax Act for mutual adjustment of dues in respect of such mutual claims.