Motilal B.Naik, J. - (1.) Petitioner is a registered dealer engaged in the business of manufacture and sale of steel utensils, metal furniture, etc. On 25-11-1991, the place of business of the petitioner was inspected by the respondents and found certain rough figures in a diary relating to reconciliation of accounts with the petitioner's supplier M/s Aprey Enterprises, Hyderabad. The respondents also noticed payments of Rs.1,15,000/- (Rs.60,000/- + Rs.55,000/-), Rs.30,289/ - and Rs.5,000/- appearing in the diary against the dates 3-5-1991,23-7-1991 and 7-9-1991.
(2.) According to the petitioner, the respondents forced the Managing Partner of the petitioner-firm to give statement as if the purchases were made in the month of October, 1991 and payments made by the petitioner were unaccounted though made in the month of October, 1991 and the petitioner sold the resultant furniture made out of such purchases of iron and steel for Rs.1,54,750/- and as first seller, he is liable to pay tax.
(3.) Pursuant to the inspection of the business premises of the petitioner by the respondents, the respondents issued a notice dated 25-11-1991 to the petitioner requiring the petitioner to pay a tax of Rs.11,198/- and to offer his explanation if any, on the question of irregularities noticed by them and further indicating that the department is willing to compound the offence if the petitioner desires to do so. Though the petitioner paid the tax of Rs.11,198/- along with the compounding fee of Rs.22,396/-, this writ petition is filed invoking the extraordinary jurisdiction of this court under Article 226 of the Constitution of India seeking a mandamus or any other appropriate direction declaring the action of the respondents in collecting Rs. 11,198/- towards tax without passing any assessment order and also collection of an amount of Rs.22,396/- towards compounding fee as illegal, arbitrary and a further direction is also sought directing the respondents to refund the said amount or in the alternative to declare the collection of fees to the extent of Rs.19,396/- as excessive and direct the respondents to refund the same.;