NETWORK FASHIONS Vs. DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioner filed O.P. No. 314 of 2004 before the Tribunal praying to call for the records of the respondent in TNGST/0181551/1996 -97, set aside the impugned order dated March 20, 1998 in so far as the levy of additional sales tax on the taxable turnover reported by the petitioner for the period from August 1,1996 to March 31, 1997 as the same is against the provisions of the Tamil Nadu Additional Sales Tax Act, 1970 and beyond the taxing powers of the respondent and that original petition stands converted to this writ petition on being transferred to the file of this Court.

(2.) THE material facts, which have been stated in paragraphs Nos. 8 and 9 of the affidavit filed in support of the original petition for seeking the relief were that the respondent issued a proposal notice to levy additional sales tax on a taxable turnover of Rs. 61,72,212 after deducting Rs. 10 lakhs from the taxable turnover of Rs. 71,72,212. The petitioner approached the respondent in person and requested him not to levy additional sales tax on the entire taxable turnover reported by the petitioner. Ignoring the oral objection raised by the petitioner, the respondent passed the impugned order levying additional sales tax for a taxable turnover reported for the period from August 1, 1996 to March 31,1997 also. It is further contended that the petitioner once again met the respondent and requested him to revise the assessment and delete the additional sales tax for the aforesaid period. The respondent did not accept the same. The levy of sales tax for the aforesaid period when the petitioner's taxable turnover has not exceeded Rs. 100 crores was beyond the power of the respondent. Hence the impugned order dated March 20, 1998 has to be set aside.

(3.) IT could be seen from the assessment order that the respondent proposed to bring the turnover of Rs. 61,72,212 for additional sales tax at the rate of 1.5 per cent in addition to the other turnover, which were proposed to be brought to tax at various percentages. The proposal notice was issued and served on the dealer by registered postal acknowledgement due on February 12,1998. In spite of sufficient time and opportunity given to the petitioner, they did not file any objection till the impugned assessment order was passed. Thereupon the assessing officer finally determined the turnover to tax which was served on the petitioner, as seen from the impugned order on April 1,1998. As per the affidavit filed in support of the original petition, it seems no appeal, whatsoever, has been filed for quite a long number of years and in the year 2004, the assessment order dated March 20, 1998 was challenged as aforesaid.