BRILLIANT TRADERS Vs. SALES-TAX OFFICER QUILON

JUDGEMENT

(1.) This is a petition under Art.226 of the Constitution filed by Messrs. Brilliant Traders Ltd., Quilon, questioning the validity of an order under S.11(2) of the Travancore - Cochin Sales Tax Act, XI of 1125.

(2.) The petitioners were assessed to sales tax by the 1st respondent Sales Tax Officer, Quilon, on 15-12-1953 for the periods 1951-52 and 1952-53 in respect of their sale transactions in timber inside the State. That same order exempted their other transactions by way of inter State sales, but they were directed to pay over to the State a sum of Rs. 6966-11-6 pies and another sum of Rs. 2613-11-0 which had been already collected by them as sales tax on such transactions during those periods under S.11(2) of the Act. The petitioners disputed their liability to pay these collections but they were overruled by the Sales Tax Officer in the first instance and thereafter in appeal and revision before the respondents 2 and 3 respectively. Hence this petition for the issue of appropriate writ or order or direction quashing the order for payment under S.11(2). The main grounds relied on in the affidavit in support were three-fold, firstly that S.11(2), on proper construction applied only to sales tax properly collectable and collected. It did not apply to illegal collections as here made, secondly, that S.11(2) could apply only to tax collected specifically under Travancore - Cochin Sales Tax Act and not the Madras Act as the petitioners had purported to do. This ground was modified to certain extent at the time of argument, and thirdly that the order for return should have excepted cases of refund already made by the petitioners to particular vendees. This last ground was given up at the time of argument.

(3.) The petition was resisted by the respondents on the footing that the first ground as to construction of S.11(2) of the Act was unsustainable, and as regards the other grounds the basic facts were themselves being questioned.