K KANNAIAH Vs. DEPUTY COMMERCIAL TAX OFFICER GUNTUR

JUDGEMENT

(1.) The proper interpretation of section 41 of the Andhra Pradesh General Sales Tax Act, 1957 (VI of 1957) is involved in this enquiry. This writ petition relates to the assessment years 1956-57. The petitioner,, who is a dealer in tobacco, was assessed to tax by the proper Commercial Tax Officer by an order dated 27th March, 1959 and a sum of Rs. 9,962-2-5 was demanded as the tax due and payable by him. It is to quash this order of assessment that the writ petition was filed under Article 226 of the Constitution, contending that it was beyond the competence of the department to make an assessment in respect of purchases made during the period of the operation of the Madras General Sales Tax Act after it had ceased to be in force.

(2.) Before we deal with the controversy relating to the construction of section 41, we have to read that section. It postulates :

(3.) We need not quote sub-section (2), as it is not material for our present purpose. We are here mainly concerned with the import of the expression " obligation or liability already acquired, accrued or incurred thereunder." The argument pressed upon us by Sri P.A. Chowdary, learned Counsel for the petitioner, is that, the relevant clause has reference only to the tax ascertained and levied and does not take in chargeability to tax.