ONGC LIMITED Vs. SALES OFFICER

JUDGEMENT

(1.) Rule. Service of Rule is waived by Mr. M.G.Doshit, learned counsel for the respondents. Heard at the request of parties.

(2.) The petitioner challenges two notices issued by the respondent No.1 Sales Tax Officer one on 17.12.98 asking the petitioner to pay a sum of Rs.2,92,47,252/purported to be as interest payable by the assessee, under Section 47 of the Gujarat Sales Tax Act 1969 and another notice of demand dated 15.2.99 asking the petitioner to pay like sum by way of penalty under Sections 45 or 46 of the said Act. The petitioner alleges that neither assessment has been made sofar which can provide foundation for any demand either by way of interest or by way of penalty nor any hearing was given before raising this demand. He further contends that in fact revised declaration was made under Section 40(3) by mistake and accordingly tax as per such revised declaration had tax has been paid by the assessee under a mistake and he is entitled to claim refund which he would put forward during the course of assessment proceedings.

(3.) Learned counsel for the revenue conceded to the extent the grievance of the petitioner is related to the demand of penalty admitting the fact that no assessment order has been made sofar, and that until liability of the assessee to pay tax is determined, or any order levying penalty under Section 45 or 6 of the Act is made in appropriate proceedings, no demand asking the assessee to make any amount by way of penalty could have been raised. He therefore candidly states that notice dated 15.2.1999 raising a demand of Rs.2,92,47,252.00 by way of penalty under Section 45/46 of the Act is premature.