INDO SWING LIMITED NOW MALHOTRA SHAVING PRODUCTS LIMITED Vs. COMMERCIAL TAX OFFICER FEROZGUDA HYDERABAD

JUDGEMENT

(1.) Petitioner is an assessee under the first respondent, Commercial Tax Officer. In respect of the assessment for the assessment year 1987-88, the first respondent passed an order on 10/05/1991 determining the tax payable by the petitioner Rs. 27,64,413.16. Since the petitioner had paid excess amount towards tax, he issued form "C" refund order for Rs. 6,09,778.53. It was also stated that amount would be adjusted towards tax for the year 1991-92. The assessment for the year 1991-92 was completed on 12/10/1993 without adjusting the refund resulting in demand of Rs. 2.40 lakhs. Petitioner has disputed the said amount and filed an appeal. He also wrote a letter requesting the first respondent that the demand for 1991-92 was wrong since an amount of Rs. 6,09,778.53 was due to him according to form "C" refund order.

(2.) Apparently after receiving the above letter, the first respondent issued a notice dated 28/12/1993 requiring the petitioner to produce books of account for the year 1987-88 under the Andhra Pradesh General Sales Tax Act, xerox copies of the final assessment order and form "C" refund order along with the payment details of the assessment year 1987-88 within three days from the date of receipt of the said notice. Petitioner states that he received that notice only on 2/01/1994. He was preparing to comply with the requirements of the notice but in the meantime, the first respondent passed an order which was signed on 4/01/1994 rectifying seemingly, arithmetical mistakes in the order in so far as refund amount due to the petitioner was concerned, as a consequence of which, the refund amount was reduced from Rs. 6,09,778.53 to an amount of Rs. 17,695. Even in respect of that amount, petitioner was informed that the amount was forfeited under sections 30-B and 30-C of the Andhra Pradesh General Sales Tax Act, 1957.

(3.) Counsel for the petitioner rests his case entirely on the provisions of rule 50 of the Andhra Pradesh General Sales Tax Rules which enables rectification of orders by the assessing or appellate or revising authority. He also relied on the requirements of the provisions of sections 30-B and 30-C of the Andhra Pradesh General Sales Tax Act in support of his submission and urged that the order is unsustainable.