TULSI RAM SUD Vs. EXCISE AND TAXATION COMMISSIONER

JUDGEMENT

(1.) THIS is a petition by one Tulsi Ram under Article 226 of the Constitution of India and is directed against the order of the Assessing Authority, Kangra, asking the petitioner to pay purchase tax amounting to Rs. 952-47 np.

(2.) THE petitioner is a registered dealer and also a tea merchant. He purchases tea from the growers directly and also from other registered dealers. He sells his tea through commission agents at Amritsar. With regard to the purchases in question declarations in the form prescribed were furnished and after examining the account books and the other evidence the officer concerned accepted the correctness of the returns and the turnover of the petitioner and levied the sales tax. Sometime thereafter on the 7th of August, 1961, the following notice (annexure "e") was issued to the petitioner :whereas, in consequence of definite information in my possession, I have reasons to believe that the turnover of your business assessable to sales tax for the year ending the 31st March, 1960, has been underassessed, I, therefore, propose to re-assess the said turnover that has been under-assessed. I hereby require you to show cause on 17th August, 1961, at Dharamsala. . . days of the service of this notice on you why the contemplated action should not be taken in your case. Also bring account books for 1959-60 with you.

(3.) THE petitioner contested the notice and the following order (annexure "f") was passed by the Assessing Authority on the 6th of December, 1961 :having come to know that the dealer had utilized the goods purchased by him by availing the concession of tax-free purchases from registered dealers under Section 5 (2) (a) (ii) for purposes other than for which these were purchased and had rendered himself liable to assessment of such purchases under the second proviso of Section 5 (2) (a) (ii) of the Punjab General Sales Tax Act, 1948, notice under Section 11-A read with Rule 63 was issued in response to which Shri Tulsi Ram appeared on 17th August, 1961, and his statement was recorded on solemn affirmation, according to which such purchases amounted to Rs. 6,311-11-3. He also admitted that these goods were utilized by him for sale by his commission agents and that he did not sell them. . . .