PALLAPOTHU SARVESWARA RAO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This revision case raises an interesting question of law bearing on section 14 (4) of the Andhra Pradesh General Sales Tax Act, 1957. The petitioner is a dealer in paddy and rice. The final assessment was made for the year 1956-57 by the Deputy Commercial Tax Officer, Bandar. The assessee presented an appeal against this assessment to the Deputy Commissioner of Commercial Taxes, Guntur. Pending the appeal, the Special Staff (Evasions) made a surprise inspection of the business premises of the petitioner and seized some incriminating accounts which disclosed suppression of a turnover of Rs. 69,070-5-0 of which a sum of Rs. 35,958-3-0 was liable to tax at Re. 1-9-0 per cent, and the remaining turnover at Rs. 3-2-0 per cent. Consequently, the appellate authority assessed the appellant on an additional turnover of Rs. 69,070-5-0 as revealed by his order dated 5th June, 1958 in Appeal No. 596/57-58. The petitioner did not carry this matter in appeal and the additional assessment had become final.

(2.) Subsequently, a notice was issued on 19th February, 1959, by the Deputy Commercial Tax Officer, Bandar, calling upon the petitioner to show cause why he should not be subjected to a penalty of Rs. 2,395. In reply, the petitioner admitted the suppression but added that it was due to some inadvertent mistake. Disbelieving this plea, the Deputy Commercial Tax Officer levied the penalty, which is now the subject-matter of this revision. The petitioner carried appeals unsuccessfully to the Deputy Commissioner of Commercial Taxes and the Sales Tax Appellate Tribunal.

(3.) In this revision case, the main argument pressed upon us by Dr. Bheemaraju, learned counsel for the petitioner, is that as the Deputy Commissioner of Commercial Taxes had no jurisdiction to make an additional assessment in the course of the enquiry into an appeal preferred by the assessee, any penalty based upon the additional assessment is invalid and cannot be enforced. We do not think that it is necessary for us to go into this question, as the revision can be disposed of on a shorter ground. That ground is apparent on a perusal of the relevant provision of the Andhra Pradesh General Sales Tax Act, 1957, namely, section 14 (4). That section reads as follows :-