KISAN AGENCY Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner is a proprietary firm engaged in the sale of diesel pump sets. It seeks to challenge the order, dated 18.11.2005 passed by the Commercial Taxes Tribunal, Bihar, Patna in Revision Case No. MZ -447/200 by which it rejected the petitioner 'srevision and affirmed the orders passed by the appellate and the original authorities levying sales tax, additional sales tax, interest and penalty amounting to Rs. 3,13,024.00 against the petitioner for the assessment period 1998 -99 in a proceeding under Sec.20(i)(b) of the Act. The petitioner challenges the imposition of penalty and the orders passed against it on the plea that it was not given a notice containing 'precisely and clearly the gist of accusations ' as mandatorily required under rule 19(4) of the Bihar Sales Tax Rules.

(2.) THE facts of the case are brief and simple. The petitioner firm was registered as a dealer on 29.5.1999 with liability to pay tax from 15.10.1998. In its return for the year 1998 -99, the petitioner showed the gross turnover of Rs. 36,000/ -. On the other hand, the Revenue Authorities obtained the receipts of sales of pump sets and other materials in that regard from the Land Development Bank, Muzaffarpur from which it appeared that the sales by the petitioner ran into several lakhs of rupees. On the basis of the information received from the Bank, the Assistant Commissioner, Commercial Taxes, Muzaffarpur Circle, Muzaffarpur gave a notice to the petitioner (4200/P, dated 19.11.1999) initiating a proceeding under Sec.33(i) of the Act. The notice (Annexure 2), loosely translated into English, reads as follows: You are given notice that for hearing under Sec.33(i) of the Bihar Finance Act, 1981 you are required to appear before the undersigned on 4.12.1999 alongwith the entire books of account.

(3.) THE service report of notice was received on 8.2.2000. On that date, the proceeding was adjourned, for the last time, to 18.2.2000. On 18.2.2000, once again a time petition was filed on behalf of the petitioner and the proceeding was fixed for 29.2.2000: on that date the final order was passed.