SEES JOHN Vs. SALES TAX OFFICER

JUDGEMENT

(1.) Petitioner is challenging Ext. P5 demand notice for recovery of arrears of sales tax and interest for the assessment years 1986-87, 91-92 and 92-93.

(2.) According to the petitioner, petitioner was entitled to refund of Rs. 6,821/- vide Ext.P1 dated 27-2-1991, which is an order in appeal issued by Deputy Commissioner of Sales tax (Appeals) against an order of penalty levied on the petitioner Under Section 29A(4) of the KGST Act. Petitioner's case is that refund to him should have been adjusted towards arrears of tax due for the above three years in terms of Section 44(3) of the KGST Act and after failing to adjust the amount, the assessing officer cannot demand interest for non-payment of tax for the said three years.

(3.) Government Pleader, on the other hand, submitted that Section 44(3) of the Act authorises adjustment of refunds by the assessing officer and since the assessing officer was not aware of the refund granted by the 2nd respondent to the petitioner, he could not have made any adjustments.