CENTRAL WINES Vs. SPECIAL COMMERCIAL TAX OFFICER INTELLIGENCE HYDERABAD I SECUNDERABAD

JUDGEMENT

(1.) The order of the Court was made by MADHAVA REDDY, J. - In this batch of cases (W.P. No. 5468 of 1979, T.R.C. No. 35 of 1980 and W.P. No. 5405 of 1980) the question that falls for consideration is :

(2.) The petitioner in W.P. No. 5468 of 1979 which is a partnership firm deals in liquors and beer. It sells liquor and beer under bills of sale and delivers the goods on payment of the money charged under the bill. But the sales tax payable thereon is not included in the bill; it is collected and kept in suspense account by way of separate debit notes after the goods are delivered to the buyer. The petitioner-firm has been making monthly returns of the turnover from December, 1978, to March, 1979, but has not been including the sales tax collected by it under suspense account by way of debit notes. It has, however, been informing the commercial tax authority concerned by way of separate letters the amount so collected under debit notes claiming that it was not part of the turnover and as such was not included in the returns. The petitioner-firm has been paying the sales tax due as per its monthly returns. On 3/07/1979, the Special Commercial Tax Officer, Intelligence, Hyderabad-I, issued a notice to show cause why the sales tax component mentioned in the debit notes should not be added to the turnover. The petitioner-firm submitted its explanation and produced its account book which disclosed that a sum of Rs. 16,81,240 was collected by the petitioner-firm under the debit notes, as sales tax and kept in suspense account from December, 1978, onwards. These account books supported the petitioners statement that the sales tax component was not included in the bills and that it was collected under separate debit notes. The Special Commercial Tax Officer, after considering the petitioners representation, included the said amount in the turnover. It is this action of the Special Commercial Tax Officer, that is impugned in this writ petition.

(3.) In T.R.C. No. 35 of 1980 another dealer in Indian-made foreign liquor and beer, returned a turnover of Rs. 4,32,529 for the assessment year 1975-76 and claimed that out of that amount, Rs. 1,06,925 represented sales tax collections which was shown separately in the bills. The petitioner claimed that the said amount of Rs. 1,06,925 cannot be included in the taxable turnover. The Commercial Tax Officer rejected his claim and assessed the petitioner on a turnover of Rs. 5,35,922 and the same was confirmed by the Assistant Commissioner. A further appeal filed by the petitioner before the Sales Tax Appellate Tribunal was also dismissed. The said T.R.C. is framed thus :