Additional tax notice under Central Sales Tax Act lacked statutory basis; fresh notice allowed only under State law.

A notice demanding additional tax under the Central Sales Tax Act, 1956 lacked statutory foundation because that Act contains no provision authorising such levy. The authority's power to levy additional tax could arise only under section 6B of the Karnataka Sales Tax Act, 1957, which governs additional tax on turnover under the State enactment. Accordingly, the impugned notice was quashed to the extent it proceeded under the Central Act, but liberty was reserved to issue a fresh notice for additional tax lawfully recoverable under section 6B of the State Act.

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Issues: Whether the notice demanding additional tax under the Central Sales Tax Act, 1956, was sustainable in law, and whether the authority could still proceed under section 6B of the Karnataka Sales Tax Act, 1957.

Analysis: Section 6B of the Karnataka Sales Tax Act, 1957 provides for levy of additional tax on turnover under the State enactment. The Central Sales Tax Act, 1956 contains no corresponding provision authorising levy of additional tax. The impugned notice proceeded to compute and demand additional tax as if it were recoverable under the Central Act, and that demand had no statutory foundation. The notice was therefore unsupportable to that extent, though the authority retained power to issue a fresh notice for recovery of additional tax legally recoverable under section 6B of the State Act.

Conclusion: The challenge succeeded. The impugned notice was quashed, while liberty was reserved to issue a fresh notice only for additional tax lawfully recoverable under section 6B of the Karnataka Sales Tax Act, 1957.

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