T S GOVINDARAJAN Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE petitioner in this case was originally assessed under the Madras General Sales Tax Act for the assessment year 1966-67 on a turnover of Rs. 49, 176. 26 at the rate of 1 per cent. under item 15 of Schedule I. Later, the assessing authority appears to have revised his view and issued a notice under section 16 proposing to reassess the said turnover at the rate of 2 1/2 per cent. treating the turnover as not coming under item 15 of Schedule i. Item 15 of Schedule I as amended by Madras Act 10 of 1963 is as follows : "bullion pure or alloy and specie."

(2.) IT is at the stage of the issue of notice under section 16 of the Act, that the petitioner filed the above writ petition and sought a writ of prohibition against the proposed reassessment under section 16. The petitioner also prayed for stay of the assessment proceedings. Though the writ petition was admitted, this court was not inclined to grant a stay of the reassessment proceedings and in fact, allowed the proceedings under section 16 to be completed subject to the condition that the tax, if levied, will not be collected from the assessee till the disposal of the writ petition. IT is now seen that the assessing authority has completed the assessment under section 16 and has actually assessed the turnover at the rate of 2 1/2 per cent. treating it as subject to multi-point tax under section 3 (1 ).