BASAPPA AND BROS Vs. DEPUTY COMMISSIONER OF COMMERCIAL TAXES BELGAUM DIVISION I DHARWAR AND

JUDGEMENT

(1.) In this writ petition preferred under article 226 of the Constitution of India the petitioner has prayed for the issue of a writ in the nature of the prohibition, prohibiting the Deputy Commissioner of Commercial Taxes, Belgaum Division I (respondent No. 1) from proceeding further with the rectification proceedings pursuant to his notice dated 16th February, 1970. The petitioner is a firm carrying on business in Hubli town in Mysore State. It buys cotton seeds in Mysore State and sells the same in the course of inter-State trade or commerce. The petitioner's turnover of sales of cotton seeds effected in the course of inter-State trade or commerce for the period 28th April, 1960, to 20th October, 1960, was assessed to tax by the Commercial Tax Officer, Hubli, under the Central Sales Tax Act, 1956, hereinafter called the Act. Against the said order of assessment, the petitioner preferred an appeal to the 1st respondent, who, by his order dated 26th October, 1965, following 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 ) set aside the assessment made by the Commercial Tax Officer. Consequent on the said order, the Commercial Tax Officer refunded to the petitioner the tax collected on the basis of the assessment order which was set aside on appeal.

(2.) The Act was amended by the Central Sales Tax (Amendment) Ordinance 1969, which was promulgated by the Vice-President acting as President on 9th June, 1969. The said Ordinance amended the Act with retrospective effect and validated the assessments made earlier. On the basis of the said Ordinance, the Commercial Tax Officer, Hubli, issued a notice of demand dated 25th July, 1969, demanding from the petitioner the payment of the sum of Rs. 1,702.16 being the tax amount that had been refunded to the petitioner. The said notice of demand was challenged by the petitioner before this court in W.P. No. 6317 of 1969. This court by its order dated 7th January, 1970, quashed the impugned notice on the ground that without rectification of the order of the 1st respondent made in the appeal, the Commercial Tax Officer had no right to demand the tax that had been refunded. Liberty was reserved to the 1st respondent to take steps for rectification of his under rule 38 of the Mysore Sales tax Rules, 1957, hereinafter called the Rules.

(3.) The Central Sales Tax (Amendment) Ordinance, 1969, was replaced by the Central Sales Tax (Amendment) Act, 1969 (Act No. 28 of 1969), hereinafter called the Amendment Act, which received the assent of the President on the 30th of August, 1969. The Amendment Act amended sections 6, 8 and 9 of the Act with retrospective effect and validated the assessments made earlier notwithstanding anything contained in any judgment, decree or order of any court or other authority to the contrary. All assessment proceedings taken under the Act are deemed to be taken in accordance with the Act as amended by the Amendment Act.