DEPUTY COMMERCIAL TAX OFFICER THIRUMANGALAM Vs. CHARA MILLS

JUDGEMENT

(1.) HEARD. The respondents in W. P. No. 7650 of 1983 are before us in this appeal challenging the order dated August 22, 1991 passed by the learned single judge in W. P. No. 7650 of 1983. The writ petition was filed to issue a writ of certiorari by calling for the records on the file of the first respondent relating to the records in TNGST No. 429348/79-80 dated July 7, 1983 and to quash the said order. We will refer to the parties in this order as arrayed in the writ petition.

(2.) THE writ petitioners were oil millers dealing in groundnut; they were assessees on the file of the first respondent; for the assessment year 1979-80, the total taxable turnover of Rs. 22, 88, 661 was taken into consideration as against the reported turnover of Rs. 21, 83, 575. Petitioners had done decortication of groundnut during 1979-80 and they were assessed to tax on a purchase turnover of groundnut for Rs. 21, 73, 333 at 3 per cent single point besides on sales of multipoint goods for Rs. 15, 338 at 4 per cent and additional sales tax was also levied at 0. 7 per cent. THE petitioners, aggrieved by the same, took up the matter in appeal. THE appellate authority held that the purchase turnover of groundnut was not liable to tax at the hands of the petitioner and that since the turnover of multipoint goods assessed was below taxable limit, assessment could not be made. THEreafter, the first respondent took further proceedings and passed the impugned order levying a penalty of Rs. 97, 795 under section 22 (2) of the Tamil Nadu General Sales tax Act, 1959 overruling the objections raised by the petitioners. Under the circumstances, the writ petition was filed.