METHONI TEA CO. LTD. Vs. STATE OF ASSAM

JUDGEMENT

(1.) REFERRED to as "the Assam Act"), in respect of the assessment years in question, details of which will be noticed later, are of the Assam Act proposing levy of penalty is a related aspect of the challenge made in the present writ application.

(2.) THE petitioner -company which is engaged in the manufacture and sale of tea has assailed the aforesaid demand notices as well as the notice proposing to levy penalty on two principal grounds. Firstly, it is contended that the assessments under the IT Act (hereinafter referred to as "the Central Act") following which the assessments under the Assam Act are required to be made, though finalised by the primary authority, appeals have been filed either by the petitioner -assessee or by the Revenue wherein orders have been passed requiring revision of the assessments under the Central Act as made by the primary authority. In such circumstances, it is sought to be contended that the assessments under the Assam Act are liable to be correspondingly revised. The impugned notices in question are, therefore, not legally sustainable. Secondly, it is contended on behalf of the petitioner, that the refunds under the Assam Act for different assessment years are due and payable to the petitioner. Consequently, the demand raised by the impugned notices, in a situation where excess tax paid under the Assam Act is due to the petitioner, will not be justified.

(3.) HAVING noticed the broad features of the challenge made in the present writ application it will be necessary to unravel the detailed facts as placed before the Court by Dr. A.K. Saraf, learned counsel for the petitioner, so as to understand the precise nature of the challenge made in the writ petition.