CAMPCO LIMITED Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THIS petition has come up at the stage of consideration of C. M. P. No. 8046 of 1995. After hearing the learned counsel for the petitioner and the learned Government Pleader for the taxation authority and also in view of the fact that for violation of the accepted principle of natural justice, it would be necessary to quash and set aside not only the demand notices, but also the show cause notices regarding the proposed imposition of penalty, the petition is being decided as follows.

(2.) THE petitioner is a co-operative society having its head office at Mangalore. It is a joint venture of the two States of Kerala and Karnataka and so apart from the two Governments, there are also other shareholders. THE petitioner is registered under the Kerala General Sales Tax and Central Sales Tax Acts and has approached this Court with regard to the two demand notices (exhibits P1 and P2 ). THE notices relate to the assessment years 1991-92 and 1992-93. In regard to these years the returns are filed before the respondent No. 1. Not only that, but the entire tax as per the return is also remitted. It is averred that the petitioner also paid the turnover tax under section 5 (2a) of the Kerala General Sales Tax Act to the extent of liability according to the petitioner as per the return filed.

(3.) IT is urged that proceeding straightway for the issuance of notices of demand (exhibits P1 and P2) is in violation of the principles of natural justice and contrary to the ratio of the decision of this Court [1993] 91 STC 156; 1993 KLJ (Tax Cases) 258 (Cochin Tea Syndicate v. Assistant Commissioner ). IT is also urged that even issuance of show cause notices under section 45a of the Act would also be liable to be struck down on the ground of the said notices having been issued premature.