OSWAL WOOLLEN MILLS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) ORDER dated 4. 4. 1994 (Annexure P-9) passed by the Sales Tax Tribunal, Punjab, has been challenged in this petition filed under Article 226 of the Constitution of India.

(2.) IN order to appreciate the question of law raised in the petition, we deem it appropriate to make a brief reference to the facts of the case. Petitioner is a company registered under the Punjab General Sales Tax Act, 1948 (for short, 'the Act')-The petitioner filed its four quarterly returns for the assessment year 1983-84. Revised returns for the first and third quarters were also filed. The Assessing Authority was not satisfied with the returns filed by the Company and, therefore, it issued a notice under Section 11 (2) of the Act. After completing the proceedings of assessment, the Assessing Authority passed order (Annexure P-1) dated 22. 3. 1993 and imposed an additional tax of Rs. 18,28,627. 25. It also assessed an amount of Rs. 28,83,666. 50 as interest payable by the petitioner under Section 11-C (i) of the Act. Against the order of assessment, the petitioner company filed an appeal under Section 20 of the Act before the Deputy Excise and Taxation Commissioner (Appeals), Patiala Division. An application under Section 20 (5) of the Act was also filed wherein the petitioner stated that it was not in a position to pay Rs. 47,12,294/- because of the fact that capital of the petitioner was lying locked up in the committed business and even the bank over-draft of the Company has been exhausted. The petitioner further pleaded that interest could not be included in the amount payable as a condition to the hearing of appeal. This application was dismissed by the Deputy Excise and Taxation Commissioner (Appeals) vide order dated 26. 8. 1993 (Annexure P-5) and the petitioner was directed to deposit the full amount of tax together with the interest by 7. 10. 1993 with a stipulation that in case the petitioner fails to do so, its appeal would be dismissed in limine. The petitioner then filed an appeal under Section 20 (2) of the Act before the Sales Tax Tribunal, Punjab, and also filed an application under Section 20 (5) of the Act for issue of a direction to the Appellate Authority to hear its appeal without requiring the deposit of tax and interest. By the impugned order dated 4. 4. 1994 (Annexure P-9) the Sales Tax Tribunal has dismissed the appeal filed by the petitioner with a direction that it should deposit the amount of tax together with interest by 28. 4. 1994.

(3.) WHILE the proceedings were pending before the Appellate Authority, respondent No. 2 passed a rectification order under Section 11-A (2) of the Act read with Rule 64 of the Punjab General Sales Tax Rules. By this order an additional tax of Rs. 3,98,150/- was imposed on the petitioner. Another rectification order was passed by respondent No. 2 on 1. 9. 1993 and the amount of total demand was enhanced from Rs. 3,38,150/- to Rs. 4,19,150/ -.