CHIRANJILAL AGARWALLA Vs. STATE OF ASSAM

JUDGEMENT

(1.) This application has been filed to quash the orders dated 20.6.86 passed by the Asstt. Commissioner of Taxes, Nagaon Zone and the consequent assessment orders dated 24.7.86, for the periods ending 31.3.84, 30.9.84,31.3.85 and 30.9.85 passed by the Superintendent of Taxes with a further prayer to direct the respondents from giving effect to the orders dated 20.6.86 and the impugned demand notice dt. 24,7.86. The order dated 20.6.86 is Annexure-H to the Writ application and the same is quoted below: GOVT OF ASSAM OFFICE OF THE ASSTT. COMMISSIONER OF TAXES, NAGAON ZONE. ORDER Dated Nagaon the 20th June/86 On scrutiny of the case records of M/s National Industries, Jagiroad by the Superintendent of Taxes, Morigaon in course of my inspection I observed that there was prima facie evidences to show that the dealer was under-assessed for six monthly period ending 30.9.84 under the Assam Finance (Sales Tax) Act, 1956. Hence I proceed to revise assessments completed by the Superintendent of Taxes under Section 20 (1) of the Assam Finance (Sales) Act, 1956. The dealer was served with a notice to give him a reasonable opportunity to show cause as to why his assessment should not be revised. Shri Chiranjilal Agarwalla, a partner accordingly complied and along with his submission he produced his books of accounts for examination. I examined the whole case. The dealer is an owner of a saw-mill wherein he used to saw logs purchased from different sources locally and the resultant sawn timbers were sold by him for which he was liable to pay tax. He could not claim or be allowed exemption from payment of tax for sale of sawn timber simply because be paid taxes at the time of purchase of logs since log and sawn timber are two different and separate items. So the exemption of sale of locally purchased goods did not arise in the present case. Had logs been sold as logs or sawn timbers sold as sawn timbers, then the question of exemption would have come. But there was no such case as revealed by the books of accounts of the dealer. So the entire turnover of timber would come under the purview of tax. The dealer also used to sell A.C. Sheets which were purchased locally (from Guwahati). So the turnover of AC Sheets was exempted from tax. The final workings of (taxable) turnover would be as follows: Total Sales - Rs. 4,02,733.00 Less sale of locality purchased goods Rs. 2,03,734/- Less U/s 2(9) (ii) Rs. 13,019/- Turnover Rs. 1,85,980/- The Superintendent of Taxes is directed to draw up fresh assessment order on the above basis and issue fresh demand notice to the dealer. He is also directed to recast G.T.O. under the Assam Sales Tax Act, 1947 accordingly."

(2.) Annexure 'G' is for the period ending 31.3.84, Annexure- 'H' is for the period ending 30.5.84, Annexure-I is for the period ending 31.3.85 and Annexure-J is for the period ending 30.9.85. The amounts are different but the contents are almost same. Annexure-M is the notice of demand under Section 31 of the Assam Finance (Sales Tax) Act, 1956 (herein after called the Act) and that is quoted below : To M/s National Industries Jagiroad. Sir,

(3.) If you do not pay the amount of tax on or before the date specified above, you shall be liable to pay further interest with effect from the date commencing after the expiry of the date aforesaid in accordance with the provisions of Section 22 (A) (i) read with Rules 32A and 32 B.