BANDA BROTHERS Vs. BOARD OF REVENUE MADRAS

JUDGEMENT

(1.) IN these two writ petitions, the petitioners seek writs of certiorari to quash the orders of the Board of Revenue in so far as they relate to the assessments of the assessment years 1954-55 and 1955-56 in the following circumstances. The petitioners have been carrying on business at Bombay as commission agents in piecegoods. Against orders received from their constituents in this State, they were purchasing and supplying piecegoods. The Deputy Commercial Tax Officer called for returns, but as the account books of the petitioners were with the Sales- tax authorities of Bombay they could not furnish the returns. For the two years in question, the Deputy Commercial Tax Officer made assessments on a best of judgment basis, fixing the turnover for the two years at Rs. 15 lakhs and 7 lakhs respectively. The petitioners preferred appeals. By this time, the account books had been returned to the party by the Sales Tax Authority of Bombay, and on the basis of those accounts, the appellate Assistant Commissioner accepted the returns of the petitioners and fixed the turnover at Rs. 5,72,000 for 1954-55 and rs. 2,06,000 for 1955-56 upto the 6th September 1955. Shortly thereafter, the decision of the Supreme Court in the Bengal immunity case ( (S) was rendered, with the result that the petitioners received demands from their constituents for refund of the sales tax which had been collected from them by the petitioners. In accordance with these demands the petitioners did refund such sales tax either by giving credit to them in their respective accounts, or by payment by cheque, or by the issue of credit notes, or the like methods. Such refunds are said to have been made by the petitioners before 29-1-1956. The petitioners accordingly contended in the course of their appeals that they should not be called upon to pay sales tax in respect of such transactions. Though certain certificates were produced by the petitioners rom their customers to prove the refund of the sales tax collected by them, the appellate Assistant Commissioner would not accept them. Even entries in the daybooks and the ledgers showing the refund of the sales tax or payments by cheques or the issue of credit notes were not accepted by the Appellate Assistant commissioner.

(2.) THE State of Madras issued a Government Order dated 13-6-1958, which directed the subordinate authorities of the department to take certain steps with regard to the claims to refund of sales tax. The relevant portion of this government order directed thus:

(3.) FURTHER appeals were carried by the petitioners to the Tribunal but the Tribunal declined to interfere with the orders passed, on the ground that the Tribunal could not enforce compliance with administrative directions. It directed the petitioners to obtain the relief by other means. When however the petitioners sought to obtain the relief from the Board of Revenue as the highest Revenue authority, the Board of Revenue rejected their request.