GENLITE P LTD Vs. ADDITIONAL SALES TAX OFFICER

JUDGEMENT

(1.) THE petitioner, is a dealer in diesel generator sets and an assessee on the files of the first respondent. According to the petitioner, diesel generator sets falls under item No. 77 of the First Schedule of the Kerala General Sales Tax Act, 1963 taxable at ten per cent. It is stated that the Government have issued various notifications under section 10 of the Act reducing the rate of tax on diesel generator sets from ten per cent to one per cent. THE petitioner has produced the last of such notification as exhibit P1. Claiming benefit under such notification the petitioner filed monthly returns for the months of November and December, 1996 and also for February, 1997 and the tax due one per cent was also remitted. THE assessing authority thereafter issued form 14d notice demanding the tax at ten per cent as per exhibits P5, P6 and P7 demand notices. THE petitioner challenges the said demand notices.

(2.) A statement is filed on behalf of the first respondent. It is stated that the first respondent issued notice dated January 21, 1997 stating that the item sold by them is taxable at ten per cent. It is stated that the petitioner filed objection to the above and contended that it is taxable only at one per cent and the payment made by them is right. It is further stated that from the assessment records it is seen that the petitioner has filed application to amend their CST registration certificate including manufacturing activities besides resales and to include certain items of goods they intend to purchase for resale and certain other items for manufacturing activities and packing of goods. It is stated that since the petitioner remitted tax on the turnover of diesel generators for the months of 11/96, 12/96 and 2/97 only one per cent demand notices in form 14d as contemplated under rule 21 (10) of the Kerala General Sales Tax Rules, 1963 was issued directing the petitioner to remit the balance tax.

(3.) IN such circumstances it has to be held that the demand notice exhibits P5, P6 and P7 are not in accordance with the law. Accordingly they are quashed. However, there will be a direction to the first respondent to complete the assessment of the petitioner for the year 1996-97 expeditiously, if the assessment for the said year had not already been completed.