MOHAMED SAMIULLAH Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) A Division Bench of this Court consisting of Srinivasa Iyengar and Rama Jois, JJ., has referred the following questions of law for the opinion of the Full Bench : "(1) Whether section 22-A of the Karnataka Sales Tax Act, 1957, confers power on the Commissioner to interfere with an order made by an appellate authority under section 20 of the Act ? (2) If the answer to the first question is in the affirmative, whether section 22-A of the Act is void as offending article 14 of the Constitution ?" In order to appreciate the questions referred to us, it is necessary to notice the facts of the case that are not in dispute in the first instance.

(2.) The petitioner who is engaged in the business of manufacture and sale of tobacco products is a registered dealer under the Karnataka Sales Tax Act of 1957 (Karnataka Act 25 of 1957) ("the Act"), on the file of the Commercial Tax Officer, Tiptur ("CTO").

(3.) For the assessment year 1972-73 the petitioner filed his return before the CTO inter alia claiming exemption from payment of taxes under the Act, on sales turnover of Rs. 51,465 representing sales of manure during the said period. On 16th January, 1974, the CTO accepting the said claim of the petitioner, completed his assessment for the said year. But, later the CTO exercising the powers conferred on him by section 12-A of the Act, affording necessary opportunity to the assessee and overruling his objections, reopened the assessment and held that his sales turnover was taxable as sale of "organic manure" under section 5(1) of the Act and accordingly brought the same to tax at the appropriate rate amounting to Rs. 1,800.28 (exhibit B). Against the said reassessment order, the petitioner filed an appeal under section 20 of the Act in Appeal No. 152 of 1975-76 before the Deputy Commissioner of Commercial Taxes (Appeals), Bangalore Division, Bangalore ("DC"), who by his order dated 5th January, 1976, allowed the petitioner's appeal and set aside the order of the CTO (exhibit C).