STAYNOR AND CO Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THIS is an application under Article 226 of the Constitution for writs in the nature of mandamus, certiorari and prohibition for an order cancelling the requisition of the respondent, dated the 2nd August, 1950, which called upon the petitioners to re-submit return for quarters ending June, September and December, 1949, and March and June, 1950, along with treasury chalans and threatened to impose penalty under Section 11(1) of the Bengal Sales Tax Act in default of compliance within 30 days and also for quashing of the said proceedings of assessment.

(2.) THE petitioners have been carrying on the business of auctioneers in co-partnership under the name and style of Staynor and Co. since 1st March, 1943. It is alleged in the petition that the predecessor in interest of the petitioners got the firm of Staynor and Co. registered as a "dealer" under the Bengal Finance Sales Tax Act, 1941, under a misapprehension as to their correct status, and the petitioners also submitted returns under the impression that they were liable to tax as dealer and assessments have been made on them up to the quarter ending 31st March, 1946. In respect of succeeding quarters up to 30th June, 1950, returns have been submitted but no assessments have yet been made.

(3.) ON the 30th May, 1950, the petitioners applied to the Commissioner of Commercial Taxes, under Section 18 of the Act for determination of certain questions and in particular the question whether the petitioners' firm is a dealer or not. The petitioners also applied to the Commissioner for stay of pending proceedings for assessment and the stay was actually granted by the Commissioner. But by reason of promulgation of Ordinance X of 1950, on the 30th July, 1950, which repealed Section 18 of the Act the said proceedings of the petitioners pending before the Commissioner were discharged in terms of the provision of the Ordinance on the 7th August, 1950.