INTELLIGENCE OFFICER, CENTRAL INTELLIGENCE SQUAD, AGRICULTURAL INCOME-TAX AND SALES TAX Vs. HOTEL AMBASSADOR

JUDGEMENT

(1.) THESE writ appeals raise an interesting point regarding the validity of penalty proceedings taken by the Intelligence Officer against the assessee under Section 45A of the Kerala General Sales Tax Act, 1963. That section reads:

(2.) THE nature of the controversy agitated in these appeals may be understood with respect to the facts in W.A. No. 252 of 1978, which may be taken as representative of the facts presented for consideration in the other appeals also.

(3.) THE contention of the assessee was that Section 45A of the General Sales Tax Act which authorises imposition of penalty was unavailable in respect of the assessment years in question, and the grounds proposed by the impugned notices would not justify the action and, therefore, the imposition of the penalty was unsustainable in law. The learned Judge allowed the writ petition and quashed the notices and orders on two grounds. In the first place, the learned Judge was of the view that the power of imposing penalty under Section 45A could be exercised only in the course of the assessment. For this, the learned Judge derived assistance from Section 19(2) of the Act. Next, the learned Judge was also of the view that Section 45A of the Act, which came into effect only on 27th October, 1975, cannot be projected back so as to cover contravention of the assessee which had taken place and been completed prior to the introduction of the section.