GOODHEALTH AGRO TECH LIMITED Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The petitioner seeks a writ of mandamus or any other appropriate writ, etc., declaring the action of the respondent (first respondent) in detaining the vehicle No. KA. 36-1880 transporting sunflower oil to the petitioner on November 7, 1995 and issuing notice dated 8/11/1995, for payment of "tax" on the said consignment as illegal and arbitrary and directing the first respondent to release the present consignment forthwith and also to direct the respondents not to detain the future consignments of the petitioner on the basis of notice dated 8/11/1995, etc.

(2.) The petitioner, a company "engaged in the business of vegetable oil refinery and sale of such oils", is a dealer under the Andhra Pradesh General Sales Tax Act, 1957 and the Central Sales Tax Act, 1956. For its business it purchases various oils including sunflower oil from other States and also within the State. In the affidavit in support of the present writ petition, its director, Mr. Khailashchand Agarwal, states that in the recent past the authorities in the first respondent's office collected sales tax from the petitioner on incoming consignment of oils, though there were no irregularities in the transport documents, on the ground that there was shortfall of revenue in the Nalgonda Division and that these taxes were collected under threat of detention of vehicles by merely issuing cash receipts, even though no irregularities were there, and no proceedings were issued in support of the collection. It is further stated that to avoid undue expenditure on detention of vehicles, the petitioner had paid the tax to the first respondent on earlier occasions and it was being assured that this practice would end shortly. The immediate action for filing the present writ petition is that on 8/11/1995, the first respondent issued notice demanding "tax" of Rs. 6,150 on the consignment of sunflower oil being transported to the petitioner from Raichur in lorry No. KA. 36-1880. In the said notice it is mentioned that the first respondent was instructed to collect tax on oil and oil-seeds by the Deputy Commissioner (Commercial Taxes), Nalgonda Division, during her visit on 26/10/1995, as there was lot of evasion in oil trade. It is submitted on behalf of the petitioner that this notice is illegal since there are no specific allegations in respect of the said consignment. It is stated that the first respondent is neither an authority at the check-post nor assessing authority of the petitioner, and that he is only an officer having jurisdiction over the areas through which the vehicle passes, and that he detained the vehicle at observation point Bandamedipalli and indicated that he would no allow the vehicle to pass unless tax was paid. It is further stated that the notice was silent about the detention, but the vehicle was held up at the observation point for the purposes of collection of "tax" of Rs. 6,150. It is also asserted that the petitioner has not indulged in any evasion of tax.

(3.) This writ petition discloses an unfortunate tendency of the Sales Tax Department to extract monies somehow or the other in its misguided zeal "to safeguard the revenue due to the Government". This tendency has to be nipped in the bud. No person can be taxed under our Constitution except under the authority of law.