SRI KRUPASINDHU BEHERA Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner has challenged the initiation of a recovery proceeding under the Orissa Sales Tax Act, 1947 (hereafter referred to as the Act) in this writ application under articles 226 and 227 of the Constitution of India and has prayed to quash the notice issued to him for that purpose.

(2.) THE undisputed facts are that the petitioner was carrying on business of sale and purchase of goods as a partner in a firm registered as a dealer under the Orissa Sales Tax Act. There was an assessment under section 12 (4) of the Act for the year 1967-68 making a demand of Rs. 2,103. 21 by order dated 30th May, 1969 which was not paid. After dissolution of the firm, it was detected that some turnover has escaped assessment. A proceeding was initiated under section 12 (8) of the Act and by assessment order dated 24th February, 1970 the amount of tax levied on that account was Rs. 1,555. Though the order of assessment was challenged in appeal, the same was confirmed. The total tax due was thus Rs. 3,658. 21. On 7th September, 1974 the Sales Tax Officer issued a notice giving a last chance to deposit the amount of Rs. 3,658. 21 failing which it was intimated that the maximum penalty would be imposed. As the demand was not satisfied, the process of recovery under the Schedule to the Act as incorporated by the Orissa Sales Tax (Amendment) Act, 1975 (Orissa Act 3 of 1976) by issued of a certificate signed by the Tax Recovery Officer on 20th February, 1978 Demanding Rs. 3,653. 31 as tax for the year 1967-68, Rs. 2,000 as penalty and Rs. 3,106. 00 a interest, the total amount being Rs. 8,759. 31 was taken. In spite of it the Sales Tax Officer issued a notice on 27th February, 1978 calling upon the petitioner granting time till 8th March, 1978 to pay a sum of Rs. 8,759. 31 being the tax, penalty an interest demanded for the period 1967-68.

(3.) UNDER the scheme of the Act, a registered dealer is to pay the tax as admitted by him along with the return. Therefore, the taxing authorities assessee the dealer under the various provisions indicated in section 12 where the return filed is not accepted under section 12 (1 ). Under section 23 right of first appeal and second appeal is provided and under section 24 reference can be made to this Court. Subject to the appeals and reference, the assessment becomes final. Section 13 provides for collection and recovery of tax and consequences of failure to pay the tax due. Under section 13 (4) it is provided that on assessment being completed a demand notice is to be served on the dealer and the demanded amount is to be paid within such time as fixed in the notice. There is no dispute in this Court that the amount reflected in the impugned notice towards tax was to be paid much prior to 1st January, 1971 which remained unpaid.