SAKTHI SUGARS LIMITED Vs. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES CENTRAL ASSESSMENT CIRCLE I COIMBATORE

JUDGEMENT

(1.) THESE several writ appeals and writ petitions raise a question with regard to the validity of section 24(3) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as the Act) as well as the validity of the notices of demand issued under section 24(3) of the Act before it was amended by Act 22 of 1982 with effect from 1st November, 1982 and under rule 18(3) of the Tamil Nadu General Sales Tax Rules, 1959 (hereinafter referred to as the Rules). It is not necessary at this stage to refer to the facts in these several cases. Suffice it to mention that in almost all these petitions and appeals, the assessments were regulated by rule 18 of the Rules, and consequently monthly returns in respect of the turnover of the dealers concerned had to be filed accordingly to rule 18 and in cases where the sales tax deposited along with the monthly return had been found to be deficient, notices of demand have been issued demanding penalty under section 24(3) of the Act. The penalty demanded in these notices is in respect of the entire period of one month, whereas the sales tax had already been deposited during the course of a calendar month.

(2.) IN order to appreciate the arguments advanced by the several learned counsel appearing on behalf of the dealers-assesses, it is necessary to briefly outline the scheme of the Act and the Rules.

(3.) THE other relevant provision which needs to be referred is section 22 which enacts a prohibition against the collection of tax by a dealer. Under that provision, it is provided that no person who is not a registered dealer shall collect any amount by way of tax or purporting to be by way of tax under the Act, and no registered dealer shall make any such collection except in accordance with the provisions of the Act and the Rules made thereunder. Sub-section (2) is the penal section which reads as follows :