1974 (2) TMI 59

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..... vers. In view of section 15 of the Central Act, as it stood then, and the proviso to sub-section (4) of section 5 of the Karnataka Act, the purchase tax levied in respect of the turnover of the said goods was directed to be refunded to the petitioners in some of these cases by the order of assessment; in some cases no levy of tax at all was made and in some cases by a separate order the amount recovered by way of purchase tax was ordered to be refunded, because in all cases the goods in question had been sold in the course of inter-State sale. All the assessing authorities, having regard to the language of section 15 of the Central Act and the proviso to sub-section (4) of section 5 of the Karnataka Act, proceeded to pass the orders referre .....

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..... the assessee is liable to pay certain tax, no notice of demand calling upon the assessee to recover it can be issued and no coercive steps also can be taken against him to realise such tax. The assessment orders passed against the petitioners in these cases can be classified into three categories. They are: (1) The assessment orders in which no levy has been made at all in respect of the turnover of the declared goods under sub-section (4) of section 5 of the Karnataka Act on the ground that it was unnecessary to do so because of the proviso to the said sub-section; (2) The assessment orders in which there has been a levy of sales tax payable under the main part of sub-section (4) of section 5 of the Karnataka Act and an order directing .....

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..... t. The amendments to the statute do not empower the assessing officers to make a demand of the tax straightaway without following the procedure applicable to assessments of sales tax. When the orders of assessment do not state that the assessee is liable to pay the tax demanded, it would be necessary to rectify them first by bringing them in conformity with the intendment of the law. There can be no difference between the cases falling under categories 1 and 2, referred to above, and the cases falling under the third category, because an order of refund which has been passed subsequent to the order of assessment pursuant to the requirement of the proviso to sub-section (4) of section 5 of the Karnataka Act should be treated for all purposes .....

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