SRLNIVASA TRADERS Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This writ petition has been preferred seeking a writ of Certiorari, etc., quashing the notice dated 10-10-1995 issued by the first respondent, i.e., the Commercial Tax Officer, Jadcherla, Mahaboobnagar District, to the petitioner, a partnership firm, requiring it to pay a sum of Rs.80,000/- within seven days from the date of receipt of the said notice.

(2.) The reason for the notice has been stated therein as "that the cheque bearing No.238352, dt 13-7-1995 for an amount of Rs.80,000/- towards tax estimated on forty way bills which were lost issued by them (the petitioner) has been presented in the bank on 24-7-1995 by the A.C.T.O., Nagarkurnool", and that the said cheque was returned back stating that the payment had been stopped by the drawer on 24-7-1995.

(3.) The undisputed facts are that the way-bill book issued to the petitioner was lost on 6-1-1995 and in spite of efforts made to find it, it was not found. A complaint was lodged by the petitioner before the Station House Officer, Nagarkumool on 9-1-1995 and the petitioner informed the first respondent of the said loss on 19-1-1995. The petitioner was required to furnish bank guarantee and accordingly the petitioner furnished bank guarantee No.1/95 dated 4-2-1995 of the State Bank of Hyderabad, Nagarkumool for Rs.80,000/- in favour of the first respondent and the said bank guarantee is valid for one year, i.e. up to 3-2-1996. In addition the petitioner also gave indemnity bond dated 16-2-1995. Subsequently, on 13-7-1995 certain authorities of the Commercial Tax Department coercively collected a cheque dated 13-7-1995 drawn on State Bank of India, Nagarkumool in favour of the first respondent for Rs.80,000/- towards the estimated tax in respect of the way bills which were lost, despite the protestations on behalf of the petitioner. The petitioner complains that there was no warrant whatsoever or authority of law for collection of the said cheque. The petitioner instructed the bank to stop the said cheque and thereafter the petitioner received the impugned notice.