AMAR CHAND Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BY this petition under Art. 226 of the Constitution, the petitioner has challenged the validity of the notice Ex. 3 dated November 8, 1977 issued by the Assistant Commercial Taxes Officer, A-Ward, Sri Ganga-nager Circle Sri Ganganagar, under rule 54 of the Rajasthan Sales-tax Rules, 1955, made by the State of Rajasthan in exercise of its powers conferred by section 26 of the Rajasthan Sales-tax Act (No. 29 of 1954 ).

(2.) THE relevant facts giving rise to this petition may be stated within a narrow compass. THE petitioner is a registered dealer under the Rajasthan Sales-tax Act. He purchased poppy heads (there is a dispute between the parties as to whether the article in question is poppy-head or lanced poppy-head) during the accounting year 1976-77 from certain dealers and paid the Rajasthan sales-tax at the time of purchase on the purchase price. However, the Assistant Commercial Taxes Officer, Sri Ganganagar, issused the impugned notice to him to show cause why tax should not be assessed on the sale-price realised by him on the poppy heads in question on the ground that the article in dispute is taxable at the last point. Certain other points have also been raised in the notice but we do not consider it necessary to refer to them, at the arguments addressed by the learned counsel for the parties are confined only to the question whether the petitioner is liable to pay tax on the last point. THE contention raised on behalf of the petitioner is that tax having been realised on the turnover at the first point, it is not open to the taxing authority to demand tax on the sale of the same article at the last point. It has also been urged that the tax has been rightly paid on the first point in view of section 2 (s) (iv) of the Act. Shri S. C. Bhandari, appearing for the Assistant Commercial Taxes Officer, has, however, raised a preliminary objection to the entertain ability of the writ petition on the ground that it is premature inasmuch as only a notice to show cause has been issued to the petitioner and the petitioner has rushed to this court to invoke its extraordinary jurisdiction under Art. 226 of the Constitution without obtaining orders from the taxing authority. He has also submitted that the mere fact that tax has been paid by the assessee on the first point, will not absolve him of the liability to pay the tax at the last point, in case it is so warranted by law. In this connection, he has invited our attention to the Notification issued by the State of Rajasthan whereby in case of sale of poppy heads, it has been directed that the tax will be levied at the last point.