9911796707
TMI Blog1995 (9) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... a co-operative society having its head office at Mangalore. It is a joint venture of the two States of Kerala and Karnataka and so apart from the two Governments, there are also other shareholders. The petitioner is registered under the Kerala General Sales Tax and Central Sales Tax Acts and has approached this Court with regard to the two demand notices (exhibits P1 and P2). The notices relate to the assessment years 1991-92 and 1992-93. In regard to these years the returns are filed before the respondent No. 1. Not only that, but the entire tax as per the return is also remitted. It is averred that the petitioner also paid the turnover tax under section 5(2A) of the Kerala General Sales Tax Act to the extent of liability according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cedure is complete, no liability could be said to incur either in regard to the amount demanded under the notices and claimed as penalty in view of the show cause notices under section 45A of the Act. 7.. The learned counsel for the department submitted that in fact exhibits P3 and P4 are only show cause notices calling upon the petitioner to show cause as to why the penalty proposed be not levied and therefore it is not necessary to grant the prayer of the petitioner in regard thereto as by issuance of the said notices (exhibits P3 and P4) what is followed cannot be other than the principle of natural justice. 8.. At the other end it is the contention of the present petitioner that the penalty and the show cause notice in regard theret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever the amount of tax that is settled as payable as per the conclusion in the process of assessment. 10.. Following the decision, therefore, it will have to be held that the two demand notices as well as the two show cause notices (collectively exhibits P1 to P4) would have to be held as unsustainable and liable to be quashed and set aside on the ground of violation of principles of natural justice as well as on the ground of proceeding to demand on an erroneous basis when the amounts are not admitted. The petition succeeds as above and as a consequence the two demand notices (exhibits P1 and P2) as well as the two show cause notices (exhibits P3 and P4) are quashed and set aside leaving the authority to proceed with the assessment in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
