PRIYA LOTTERIES Vs. DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioner has challenged the assessment order dated 31.12.2003 in this writ petition on the ground that the order so made is ex facie illegal as the same has been passed violating the principles of natural justice and also without adhering to the procedures contemplated under Section 12 of the Tamil Nadu General Sales Tax Act.

(2.) THE facts of the case are : THE impugned proceedings was passed based on an inspection conducted by the Enforcement Wing Officials at No.103, Avvai Shanmugam Salai, Chennai - 14, about which the petitioner was not aware of. In the above address, the petitioner had its administrative office till 31.3.1998 and it closed its business activities from 1.4.1998. THE petitioner never registered itself under the provisions of the Tamil Nadu General Sales Tax Act, as it had the sale office only at Bangalore and was a registered dealer there at Bangalore. For the notice issued to the petitioner with the proposal to levy huge tax and penalty, the petitioner filed his objections on 21.12.2003 stating that the inspection was conducted by the enforcement wing officials at No.103, Avvai Shanmugam Salai, Chennai -14 with which the petitioner has nothing to do at the time of inspection. THE petitioner already vacated the said premises and requested the respondent to make enquiries with one Mr.Rajasekar, proprietor of the Sun Lotteries, who occupied the premises after the petitioner vacated the same. But the respondent without making proper enquiry passed the impugned assessment order as if the petitioner was doing business in the above said premises during the assessment year 1998-99.

(3.) WHAT would be principle of prospective over ruling, is candidly explained by the Constitution Bench of the Supreme Court in the case of Somaiya Organics (India) Limited v. State of Uttar Pradesh (2001) 123 STC 623. In the said case in paragraph 41, the Supreme Court observed as follows :