ADUSUMILLI KUTUMBARAO Vs. THE COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) This is an application under Article 226 of the Constitution for the issue of a writ of certiorari to quash the order of assessment dated 4-10-1955 passed by the Sales Tax Officer, Second Circle, Hyderabad, and for the issue of a writ of mandamus directing the Collector of Hyderabad not to proceed against the person or property of the petitioner for the realisation of the alleged arrears of tax demanded by the Sales Tax Officer.

(2.) The petitioner is a dealer in paddy and rice, carrying on business at Gudivada and other places. He purchased rice from the Regional Director, Food Department, Government of India, under tender No. 12 and took delivery of the same at the godowns of the Government of India at Hyderabad. The Sales Tax Officer, II Circle, levied a tax of Rs. 3,936/- and directed him to pay the amount. On the petitioner failing to pay the tax, the Sales Tax Officer sent a requisition to the Collector requesting him to effect an attachment of some of the rice belonging to the petitioner, which was in the godown at Hyderabad.

(3.) The petitioner challenged the validity of the levy of sales tax on several grounds :(i) that he is not a 'casual trader' within the meaning of section 2 (c) of the Hyderabad General Sales Tax Act, 1950 (hereinafter referred to as "the Act"); (ii) that the provisions of sub-rule (6) of rule 11 of the Hyderabad General Sales Tax Rules are in conflict with Section 13 (1) of the Act and are therefore invalid; (iii) that the assessment has been made without affording the petitioner a reasonable opportunity to show cause and (iv) that in any event the transaction being an inter-state one, it is exempt from tax under Article 286(2). It may be stated here that all these contentions have been raised and dealt with by a Division Bench of the Hyderabad High Court in Apparao v. The Commissioner of Sales Tax I.L.R. 1956 Hyderabad 600.