S L RAMANATHAM Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THIS is a petition for the issue of a writ in the nature of prohibition or any other appropriate writ or direction under Article 226 of the Constitution prohibiting the Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad, from taking any further proceedings in pursuance of his notice, Board's Reference C. 854/63-1 dated 10th September, 1963.

(2.) THE petitioner, Siddamsetty Lingaiah Gari Ramanatham, carries on trade in oil, rice mill, wool and cotton. He submitted his monthly returns for the year 1956-57 ending on 31st March, 1957, under the Hyderabad General Sales Tax Act. A few months later the Andbra Pradesh General Sales Tax Act came into force on 15th June, 1957. Thereafter on 14th March, 1958, he was given a notice. This notice did not bear reference to the rule under which it was given. An assessment order was eventually made on 17th March, 1958, which was communicated to the petitioner on 8th July, 1958. It is common ground that the rates which were taken into consideration for assessing the petitioner were the same as found in the Hyderabad General Sales Tax Act. A few years later, the Commissioner of Commercial Taxes, in Board's Reference C. 854/65-1 dated 10th September, 1963, proposed to revise the said assessment on the ground that the turnover of Rs. 2,41,442. 25 relating to cotton purchased and sold by the petitioner, which was included in the gross turnover of Rs. 40,87,297. 85 was erroneously exempted from tax even though under the Hyderabad Government's Notification No. 131/tax/83/55-56 dated 22nd February, 1956, cotton including "kapas" was made liable to tax as from 1st April, 1956, at the rate of 6 paise in the rupee at the point of the first purchase in the State and the petitioner being the first purchaser in the State was liable for the same. The petitioner submitted his written objections on 30th October, 1963, stating that the assessment for 1956-57 being made under the provisions of the Andhra Pradesh General Sales Tax Act, the power to revise the said assessment could be exercised only within a period not exceeding four years from the date the order of assessment was served on him as expressly provided in section 20 (5) of the Andhra Pradesh General Sales Tax Act. The proceedings started therefore were barred by time. He, of course, raised further pleas, viz. , that he was not the first purchaser of cotton in the State, etc. , which need not be detailed here having regard to the limited scope of this proceeding.

(3.) SECTION 15 of the Hyderabad General Sales Tax Act reads thus :