- (1.) THIS revision petition is directed against the order of the Assistant Commercial Taxation Officer and that of the Deputy Commissioner, Administration, Commercial Taxation whereby a sum of Rs. 250/- was collected from the applicant by way of composition of offence. The facts of the case are that the Assistant Commercial Taxation Officer, Preventive Force, entered the premises of the applicant and inspected his accounts and pointed out that certain challans had not been posted in the sales account. It is alleged that the Assistant Commercial Taxation Officer directed the applicant to submit an application for compounding the offence although no offence had been committed. It has been submitted that the Assistant Commercial Taxation Officer threatened the applicant to sieze his documents and records if application for composition was not signed by him and submitted. It is also stated that he collected a sum of Rs. 250/- from the applicant by way of composition of the offence. THIS action of the Assistant Commercial Taxation Officer was confirmed by the Deputy Commissioner, Administration.
(2.) THE proceeding in this case taken by the Assistant Commercial Taxation Officer and confirmed by the Deputy Commissioner, Admonition has been attacked on the following grounds: (1) THE Assistant Commercial Taxation Officer had no jurisdiction to enter his premises and make a search. (2) THE Assistant Commercial Taxation Officer had no powers to compound the offence and collect a sum of Rs. 250/- and the action take by him was entirely illegal. (3) THE authority competent to sanction composition was the Deputy Commissioner Administration and the ex-post-facto sanction given by latter could not regularise an illegal out done by the Assistant Commercial Taxation Officer. The learned Departmental Perokar controverted the above contentions and contended that the Assistant Commercial Taxation Officer had jurisdiction to make inspections of the premises and examine the record of the applicant. It was argued that the application for composition was voluntarily made by the applicant under sec. 16 (5) of the Act. It was also urged that the applicant had violated provisions of r. 42 and that the competent authority had given sanction for recovery of tax of Rs. 250/- collected by the Assistant Commercial Taxation Officer. It was argued that the collection of tax had been made in anticipation of the sanction of the Deputy Commissioner who was the competent authority. In his rejoinder the learned counsel for the applicant submitted that there must first be a sale and in the instant case only a challan was issued and this did not amount to a sale and since no offence was committed, the question of compounding the offence did not arise. I have duly considered the rival contentions and examined the record. At the very face of it the action taken by the Assistant Commercial Taxation Officer was very high-handed and arbitrary. He did not enjoy the powers to sanction composition of the offence, and he had no business to collect the amonnt of tax in anticipation of sanction of the Deputy Commissioner, Administration for compounding the offence. More over he should have issued a show cause notice to the applicant in the first place pointing the offence committed by him and stipulating penal action. No sucth notice was issued. On the contrary he appears to have coerced the applicant to submit an application in writing for compounding the offence without resorting to proper procedure and without serving a show cause notice on the applicant. The ex-post-facto sanction issued by the Deputy Commissioner, Administration cannot regularise an illegal act. I am constrained to observe that such high-handed and illegal acts on the part of the subordinate officers are most reprehensible. The Assistant Commercial Taxation Officer ignored the provisions of law and completely threw the procedure over board. The result is that this revision petition is accepted and the orders passed by the Assistant Commercial Taxation Officer and by the Deputy Commissioner are set aside. This is a case where the Assistant Commercial Taxation Officer concerned should be issued strong warning by the Department for committing an act which is so utterly indefensible. The amount of tax if collected should be refunded to the applicant forthwith. Pronounced in the open court. .;