M I ISHAQUE YAKUB AND CO Vs. COMMERCIAL TAX OFFICER I CIRCLE MYSORE

JUDGEMENT

(1.) These writ petitions are directed against the five assessment orders dated 31st March, 1970, made by the respondent under the Central Sales Tax Act, 1956, hereinafter called the Act, assessing the petitioners to tax for the year ended on 31st March, 1965. The petitioners are dealers in hides and skins. Their turnover in inter-State sales was not liable to tax under the Central Sales Tax Act, 1956, in view of the decision of the Supreme Court in State of Mysore v. Yaddalam Lakshminarasimhiah Setty & Sons AIR1965 SC 1510 , [1965 ]2 SCR129 , [1965 ]16 STC231 (SC ). After the Act was amended by the Central Act 28 of 1969, the respondent passed the assessment orders. According to the said assessment orders, the tax assessed and the tax demanded are as follows :- <FRM>JUDGEMENT_26_TLKAR0_1970Html1.htm</FRM>

(2.) In all the above cases, the tax demanded is more than the tax assessed. The respondent has demanded more amount than what has been assessed, on the ground that the petitioners have collected more amounts by way of tax. The entire amounts collected by the petitioners by way of tax have been demanded notwithstanding the fact that the tax assessed on the respective turnovers of the petitioners is less.

(3.) The petitioners have challenged the assessment orders on the following two grounds : firstly, that the respondent has no jurisdiction to demand any amount in excess of the tax assessed; secondly, that under the Act before it was amended, the transactions in question were not exigible to tax and therefore whatever amounts were collected by the petitioners before the amendment of the Act cannot be said to be tax collected under the Act and therefore by virtue of section 10 of the Central Act 28 of 1969 the petitioners' turnovers between the 10th day of November, 1964, and 9th day of June, 1969, are exempt from tax.