Advance-tax demand under sales tax law requires a shortfall in the dealer's own return, not a zero-liability statement.

Section 12-B(1) of the Karnataka Sales Tax Act requires advance tax to be paid on the basis of the dealer's own monthly statement of actual taxable turnover. Rule 17(2) permits a demand only when the amount remitted with that statement falls short of the amount payable disclosed in the statement itself. Where the dealer admits no tax liability in the return, no immediate demand notice can be issued under the advance-tax machinery; the authority must await final assessment and, if tax is ultimately found payable, proceed under section 12-B(2) and the associated penalty provisions after reasonable opportunity.

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Issues: Whether a demand notice for advance tax could validly be issued under section 12-B(1) of the Karnataka Sales Tax Act, 1957, when the dealer's monthly return disclosed no tax liability.

Analysis: Section 12-B(1) requires a dealer to file a monthly statement and pay in advance the tax payable on the basis of the actual taxable turnover. Rule 17(1) prescribes the form and time for filing the statement and payment, while Rule 17(2) permits a demand only where the amount sent along with the statement falls short of the amount payable on the basis of that statement. Section 12-B(2) separately deals with the consequence where, at the end of the year, the tax finally assessed exceeds the advance tax paid, including the possibility of penalty after reasonable opportunity. On a proper reading of these provisions, where the dealer does not admit any tax liability in the statement, there is no basis for an immediate demand under Rule 17(2); the authority must await final assessment and proceed under section 12-B(2) if tax is found payable.

Conclusion: The demand notice was not warranted by law and was liable to be quashed.

Final Conclusion: The writ petition succeeded and the impugned demand for advance tax was annulled.

Ratio Decidendi: A demand under the advance-tax machinery can be made only when the dealer's own statement discloses an amount payable and the remittance falls short of that amount; if no tax is admitted in the return, recourse lies to final assessment and the penalty provisions, not to an immediate demand.

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