JYOTHI CHEMICALS Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THESE writ petitions raise a common question of law as to what is the stage of recovery of the tax under the Central Sales Tax Act, where the monthly return filed is not accompanied by a challan or a cheque for the admitted tax. For appreciating the contentions raised, it is enough to state the facts in W. P. No. 5353 of 1973.

(2.) FOR the month of September, 1972, the petitioner filed the Central sales tax return as required under Rule 14-A (1) before 25th October, 1972, showing a turnover of Rs. 3,62,378 and the tax payable thereon as Rs. 10,871. The return, however, was not accompanied by a receipt from a Government treasury or a crossed cheque in favour of the assessing authority for the full amount of the tax payable for the month to which the return related as required by Rule 14-A (1) of the Central Sales Tax (Andhra Pradesh) Rules (hereinafter referred to as the Central Sales Tax Rules ). The Commercial Tax Officer, the first respondent herein, issued a demand notice in form C. S. T. VII, referable to Rule 14-A (4) of the said Rules, on 21st July, 1973, for the payment of Rs. 10,871 within 21 days of the receipt of the said notice. It is this action of the respondent that is challenged in this writ petition and similar action of the respondents in the other writ petitions.

(3.) THE main contention of Sri Dasaratharama Reddi, the learned counsel for the petitioner, is that while the Andhra Pradesh General Sales Tax Rules make provision for the recovery of the admitted tax, when the return filed is not accompanied by proof of payment of tax, even before the final assessment is made, the Central Rules do not make any provision for making a best of judgment assessment and for the recovery of the tax in such circumstances. According to him, under the Central Sales Tax Rules, the best of judgment assessment can be made provisionally only where a return is not filed or the return filed is incorrect, but not where the turnover disclosed in the return is not disputed or the return is not accompanied by proof of payment of tax. Under the A. P. General Sales Tax Rules every dealer is under an obligation to submit a return of the turnover under Rule 8 or 9 within 30 days of the close of the year to the assessing authority of the area in which the principal place of business is situate, showing the total turnover and net turnover at all places of his business in the preceding year. A final assessment on acceptance of the return is made under Sub-rule (4) of Rule 15. Where any dealer fails to submit the return before the date prescribed or if the return submitted appears to the assessing authority to be incorrect or incomplete, the assessing authority is empowered to assess according to the best of his judgment, after following the procedure prescribed in Rule 12, which, among others, provides for giving notice to the dealer. However, dealers whose turnover exceeds Rs. 50,000 a year, are given the option of adopting the method of assessment prescribed in Sub-rules (2) to (7) of Rule 17 for being assessed on the basis of monthly returns to be filed before the 25th of the succeeding month. Along with such monthly return, the dealer is bound to submit a receipt from a Government treasury or a crossed cheque in favour of the assessing authority for the full amount of tax or taxes payable for the month to which the return relates. Sub-rule (3) of Rule 17 lays down that the return so filed, subject to the provisions of Sub-rule (4), be provisionally accepted. Sub-rule (4) of Rule 17 lays down :