SHEETAL REFINERIES PVT LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) In this writ petition, the petitioner has sought for quashing of the provisional attachment notice No. CCT's JC (CT) Enf./ CTO-V/10/2000-2001, dated 20-3-2001 issued by the Commercial Tax Officer (Intelligence), No.V, Enforcement Wing, Nampally, Hyderabad, the 1st respondent herein attaching the bank account of the petitioner in exercise of the powers conferred upon him under Section 17-B of the Andhra Pradesh General Sales Tax Act, 1957, for short "the APGST Act".

(2.) To state the case of the petitioner in brief, the petitioner's assessment under the provisions of the'APGST Act for the years 2000-2001 is pending. Even though the year is ripe for final assessment by the end of March, 2001, the 1st respondent has proposed provisional assessment by notice dated 27-2-2001 for the months of August to November, 2000 to raise the arbitrary demand of about Rs. 19 lakhs. The issue involved in the assessment is relating to the claim of set-off made by the petitioner on non- refined sunflower oil from the tax payable on refined sunflower oil in terms of G.O.Ms.No. 191, dated 6-4-2000. The provisional assessment notice is issued alleging that since the petitioner purchases raw material within and outside Andhra Pradesh the set-off under the G.O. must be allowed on proportionate basis. In order to claim set-off of tax, the petitioner maintains separate stock registers and separate storage tanks in respect of local purchases and outside purchases of sunflower oil and the disposal of the refined sunflower oil is also effected in segregated manner. The petitioner is entitled to claim set-off of entire tax paid on local purchases against the tax payable by the petitioner. The provisional assessment orders for 1999-2000 (April to July, 2000) restricting the set-off on pro rata basis was set aside by the appellate authority by its order dated 26-2-2001 holding that proportionate basis need not be adopted in view of the storage facilities and segregated accounting. Therefore, the show-cause notice dated 27-2-2001 issued by the 1st respondent for the period August to November, 2000 proposing to restrict the set off of sales-tax and also disbelieving the purchases made from M/s. Shyambaba Agro Tech on the ground that the dealer is fictitious is totally unjustified and illegal. The petitioner sought time of one month by letter dated 30-3-2001 addressed to the 1st respondent. But, the 1st respondent insisted that objections should be filed on or before 29-3-2001. As the petitioner's Counsel was pre-occupied with certain time barring assessments, the Counsel requested for 21 days time by letter dated 27-3-2001. When the matter stood thus, the petitioner received the impugned provisional attachment notice dated 20-3-2001 addressed to the Manager, State Bank of Hyderabad, the 2nd respondent herein under Section 17-B of the APGST Act seeking to attach the bank account of the petitioner.

(3.) So alleging, the writ petition was filed on 30-3-2001. It is submitted by Sri P. Srinivas Reddy, learned Counsel for the petitioner that after filing the writ petition, the petitioner filed objections to the show-cause notice dated 27-2-2001 issued by the 1st respondent for the period August to November, 2000 on 16-4-2001 and 22-5-2001.