NOKIA INDIA PVT LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(2.) THE prayer in the original petition is to set aside the urgent notice in TNGST No. 0640640/ 2002 -2003/A3 dated June 10, 2003.

(3.) I have heard the contentions carefully. The assessment year relates to 2002 -2003. A perusal of the notice dated May 21, 2003 shows that the respondent has demanded the difference of tax of Rs. 56,42,128, which arises between the tax actually due at 20 per cent on the imported cellular telephone handsets and that was admitted and paid by the assessee at the rate of 12 per cent, based on the monthly returns filed by the assessee for the months from April, 2002 to August, 2002. The same amount has been demanded in the impugned notice dated June 10, 2003 also. Prima facie, I could see from the notice dated May 21, 2003 that the demand has been raised not as a result of an order of assessment for the year 2002 -2003, but on the basis of monthly returns filed. When the assessment year 2002 -2003 had already completed on March 31, 2003, the proper course for the respondent/assessing authority is to follow the procedures for assessment prescribed under the statute and finalise the assessment in accordance with law and then demand the tax actually due to be paid. In this case, the respondent has not followed the principles of natural justice, but straightaway issued the demand notices without finalising the assessment. Hence, on the ground of violation of principle of natural justice, I set aside the notices dated May 21, 2003 and June 10, 2003, issued by the respondent and direct the respondent to finalise the assessment in accordance with law and proceed further for recovering the tax dues.

(4.) IN fine, the original petition is allowed in the above manner. Consequently, the O.M.P. does not survive.