Pre-assessment tax demand beyond admitted return was impermissible where assessment had not been finalised.

A notice under section 10(6) of the Punjab General Sales Tax Act could not demand tax beyond the amount admitted in the return before the assessment was finalised. Until the return was adjudicated and assessment completed, the dealer remained bound only by the tax shown in the return, and any additional liability could be determined only after the Assessing Authority decided the return on merits and examined the claimed deductions. A further demand without such adjudication was not permissible, and the impugned notice was quashed.

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Issues: Whether a notice issued under section 10(6) of the Punjab General Sales Tax Act could demand tax over and above the amount shown as due in the return before the assessment was finalised.

Analysis: The return filed by the petitioner had not yet been adjudicated upon and the assessment had not been completed. Until such adjudication, the dealer remained bound only to pay tax in accordance with the return, while the Assessing Authority could, in law, scrutinise the deductions claimed and determine any additional liability only after deciding the return on merits. In the absence of such adjudication, a further demand beyond the tax admitted in the return was not permissible under the provision invoked.

Conclusion: The notice demanding additional tax before finalisation of assessment was invalid and was quashed.

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