On December 17, 1959, the Rajasthan Sales Tax Validation Act Rajasthan Act 43 of 1959 replaced the Ordinance.
The assessee also deposited alongwith the revised returns the balance of the sales tax payable under the Act and under the Central Sales Tax Act.
Thereupon the respondent therein withdrew the writ petition.
On December 4, 1959, the Sales Tax Officer called upon the respondent therein to pay tax due by him within a week as the writ petition had been withdrawn and dismissed.
53,355 under section 7AA of the State Act and interest amounting to Rs.
From the Assessment orders dated the 30th January, 1980 of the Commercial Tax officer, Spl.
5 of 1959 was promulgated on November 6, 1959 validating the Rules.
On January 9, 1958 the High Court passed an interim order stating that the petitioner will keep proper accounts and file the prescribed returns but shall number be assessed till further orders.
The effect of the ordinance and the Validation Act was to validate the Rules even if any defect existed in the making of the Rules.
In Ghasi Lal case supra , this Court was companycerned with the question of sustainability of penalties imposed under the Act and number interest leviable under section 11B. The relevant facts in that case were these Thee respondent therein who was a dealer within the meaning of the Act filed a writ petition in the High Court of Rajasthan challenging the making of assessment 13 on his turnover for the year 1955 56 on the ground that the Rules which had been published on March 28, 1955 were invalid.
As soon as this decision was given by the Court on 29th August 1978, the assessee immediately prepared revised returns in respect of the period 1st August 1973 up to 31st July 1974 showing the amount of freight as forming part of the taxable turn over and filed the same before the Commercial Tax officer, Special Circle, Kota on 20th October 1978.
Circle Kota, Rajasthan for the assessment year 1974 75.
Soli J. Sorabji, B.R. Agarwal and P. G. Gokhale for the Appellants.
The respondent had filed his returns earlier and also had deposited certain amounts towards tax.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
On April 25, 1960, the Sales Tax Officer made an assessment in respect of the accounting period November 3, 1956 to October 22, 1957 and also proceeded to impose a penalty of Rs.
The assessee also deposited along with the revised returns challans showing payment of the balance of the tax on the basis of the revised returns under the State Act as well as the Central Act.
This impression was carried by the assessee in view of certain decisions which had been given by some High Courts as well as the Supreme Court and particularly the decision of the Supreme Court in Hyderabad Asbestos Cement Products Limited v. State of Andhra Pradesh 1 .
The former order of assessment levied a penalty of Rs.
The assessee is a public limited companypany carrying on business of manufacture and sale of cement.
T. Desai and B. D. Sharma for the Respondents.
The amount of tax paid by the assessee obviously did number include tax on the amount of freight, since according to the assessee the amount of freight did number form part of the sale price and was accordingly number shown in the returns as forming part of the taxable turn over.
The Judgment of A.P. Sen and E. S. Venkataramiah JJ.
852 of 1980.
Two orders of assessment were thereafter passed by the Assessing Authority, one under section 10 sub section 3 of the State Act and the other under section 9 of the Central Act.
was delivered by Venkataramiah J. P. N. Bhagwati, J. gave a dissenting opinion.
BHAGWATI, J. I have had the advantage of reading the Judgment prepared by my learned brother Venkataramiah J., but despite the great respect which I have for his learning and erudition, I find myself unable to agree with the view taken by him.
The assessee paid up for each quarter the full amount of tax calculated on the basis of the return submitted by it and the receipt for such payment was filed along with the return.
While the petition was pending in the High Court, ordinance No.
The above decision was rendered on August 22, 1978.
85,910.50 under section 11B of the State Act for the delay in payment of the tax in respect of the amount of freight under State Act, which according to the Assessing Authority ought to have been deposited alongwith the filing of the original returns.
The assessee has in the present appeal preferred with special leave challenged the validity of both these orders of assessment in so far as they levy penalty and interest on the assessee.
Similarly, the latter order of assessment also levied a penalty of Rs.
On companying to know of the said decision, the assessee prepared and filed the revised returns in respect of the assessment year in question i.e. 1974 75 before the Commercial Tax officer, Special Circle, Kota on October 20, 1978 including the freight charges in the taxable turnover.
