BHAGYANAGAR METALS LTD. Vs. THE C.T.O.

JUDGEMENT

(1.) THE only question which arises in this writ petition is. Whether the Commercial Tax Officer is entitled to issue a demand couched in the form of notice requiring an assessee to pay a fairly large amount of money allegedly towards sales tax, which may be due, if, according to him, the correct rate of tax was applied to the turnover of the dealer, who is the petitioner before us? It is surprising that the Commercial Tax Officer would not look into the law which has conferred power on him and which regulates the exercise of such power. It is not his ipsi dipsi that the tax paid by the assesses is short of what was due or the rate at which the tax was paid was less than the tax which was due, that should determine the entire proceedings. It the assessee pays tax which is less than what ought to have been paid or the rate applied was less than what should apply, the provisions of Andhra Pradesh General Sates Tax Act (APGST Act) would require the Commercial Tax Officer to notify the assessee, call for his explanation and quantify the amount due after due consideration of the objections which the assessee may file. We do not understand any provision of APGST Act to have conferred an unregulated power on the Commercial Tax Officer to demand the assessee to pay the tax within a period of three days from the date of receipt of the notice, without preceding that by the process for assessment or reassessment of tax due. In the present case, admittedly, there has been no attempt made to assess or reassess the tax due or to apply correct rate of tax to the turnover which is taxable after due compliance with the provisions of APGST Act and the Rules made there under. Government Pleader for Commercial Tax Department submits that the Impugned notice of demand is only in the nature of a provisional proposal; and instead of coming to this Court, the assessee could as well have approached the Commercial Tax Officer for necessary relief.

(2.) WE do not find any such invitation in the notice which is impugned A belated explanation on the part of the Commercial Tax Officer that he meant the demand notice requiring payment of amount of Rs. 4,49,623/ - within three days only to be a provisional proposal which the assessee could have objected to, does not justify the exercise of power in an arbitrary manner by the Commercial Tax Officer,

(3.) THE fact that we have quashed the impugned order demanding payment of tax does not preclude the Commercial Tax Officer to act according to law with due notice to the assessee.