G.S. Singhvi, J. - (1.) A short question, which arises for consideration in this writ petition is as to whether this Court should exercise its extraordinary jurisdiction under Article 226 of the Constitution of India for quashing the notice of demand issued under the provisions of the Rajasthan Salex-tax Act and the Rules framed thereunder, the order of assessment passed by the competent authority and the order passed by the Additional Commissioner on the stay application during the pendency of the appeal filed by the assessee against the order of assessment ?
(2.) The petitioner is a company registered under the Companies Act, 1956 having its registered Office at Delhi and factory at Bhiwadi. The petitioner is engaged in manufacturing of foot-wear in its factory at Bhiwadi. It also claims that it is registered as Small Scale Industry. According to the petitioner, it has been submitting its sales-tax returns regularly. A raid was conducted at the premises of the factory of the petitioner by the Anti Evasion Branch of the Sales-tax Department on 17.12.1988. Records and books of the petitioner company were seized. The same were subsequently, released in January, 1989. A notice dated 25.4.1989 was issued by the Commercial Taxes Officer, Anti Evasion alleging that the petitioner had sold goods worth Rs. 24,25,643/- and had claimed exemption under the notifications dated 8.3.1988, 23.6.1988 and 7.11.1988 issued by the Sales-tax Department. It was also alleged in the notice that the petitioner had failed to pay the requisite sales-tax. In response to this notice, one of the Directors of the petitioner-company appeared before the Commercial-Tax Officer. The Commercial-Tax Officer (Anti-Evasion) (Head Quarters) passed the assessment order dated 31.5.1989 and imposed tax and penalty amounting to Rs.11,63,768/-. He also ordered issuance of demand notice for the aforesaid demand.
(3.) According to the petitioner,an appeal has been filed before the Deputy Commissioner, Commercial Taxes (Appeals) III, Jaipur on 29.7.89, against the order dated 31.5.1989. A stay petition was also filed before the Additional Com,missioner (Anti Evasion), Jaipur for stay of the recovery of the amount specified in the order of assessment. The Additional Commissioner has dismissed this stay petition vide his order dated 16.9.89 observing that he did not find any infirmity in the order of assessment passed against the petitioner. According to the petitioner, now the appeal has become meaningless because the Deputy Commissioner (Appeals) will not be in a position to go contrary to the order passed by the Additional Commissioner. According to the petitioner, this amounts to dismissal of appeal as a whole. The petitioner has reproduced the abstracts of the Notifications issued on 8.3.88, 23.6.88 and 7.11.88. It has asserted that according to these exemption notifications, it is not required to pay sales-tax because the foot-wear manufactured by it are valued below Rs. 20/-.;