MOHAN ROLLER FLOUR MILLS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioner impugns the notice dated October 29, 1984 (annexure P. 4) purported to have been issued by the Assessing Authority, Amritsar, under Section 10 (6) of the Punjab General Sales Tax Act primarily on the ground that no such notice is envisaged by the said provision of law as the petitioner had already paid a sum of Rs. 1,39,000 as tax due from it in accordance with the return filed on its behalf. On behalf of the respondents it is pleaded that since the petitioner had paid less tax, they were entitled to issue the said notice. Having heard the learned counsel for the parties I find the respondents' stand wholly untenable.

(2.) IT is the conceded position that so far the assessment of tax has not been finalised inasmuch as the returns filed by the petitioner have not been adjudicated upon. The Assessing Authority is well entitled to disallow the deductions claimed by the petitioner in accordance with law, but till that is done, the petitioner is only under an obligation to pay the tax in accordance with its return. As a result of the adjudication of that return on merits the taxing authority may allow or disallow the claim of the petitioner and thereby create any further liability for the payment of tax. In the absence of any such adjudication the Assessing Authority obviously cannot demand any amount of tax over and above the one which is due from the petitioner in accordance with the return filed on its behalf.

(3.) FOR the reasons recorded above, the impugned notice (annexure P. 4) is quashed and the case is sent back to the Assessing Authority for disposal in accordance with law and the observations made above.