Notified sales tax rate must govern cycle assessments; ex parte challenge on adjournment telegram failed.

A disputed adjournment telegram was not accepted as a basis to unset aside the ex parte assessment, because the alleged despatch was denied on affidavit and treated as a factual controversy. The assessment challenge on that ground therefore failed. By contrast, the applicable notification had reduced the sales tax rate on cycles to 6 per cent, and the respondents admitted the reduction; assessment at 8 per cent was inconsistent with the notified rate. The tax was therefore required to be recalculated at 6 per cent, with corresponding adjustment of penalty. The writ succeeded only to that extent.

---

---

Issues: (i) Whether the ex parte assessment was liable to be set aside on the ground that the assessee had sent a telegram seeking adjournment. (ii) Whether the assessee was correctly charged sales tax at 8 per cent on cycles instead of 6 per cent.

Issue (i): Whether the ex parte assessment was liable to be set aside on the ground that the assessee had sent a telegram seeking adjournment.

Analysis: The plea regarding despatch of a telegram was denied in the return and supported by affidavit. In view of the denial and the supporting affidavit, the matter involved a disputed question of fact. The Court found no reason to disbelieve the respondents' version and did not accept the challenge to the ex parte assessment on this ground.

Conclusion: The ex parte assessment was not set aside on this ground.

Issue (ii): Whether the assessee was correctly charged sales tax at 8 per cent on cycles instead of 6 per cent.

Analysis: The notification in force reduced the rate of tax on cycles to 6 per cent. The respondents also admitted that the rate had been reduced from 8 per cent to 6 per cent. The assessment at 8 per cent was therefore inconsistent with the applicable rate.

Conclusion: The assessee was liable to be charged sales tax at 6 per cent, not 8 per cent.

Final Conclusion: The writ petition succeeded only to the extent of correction of the tax rate and corresponding penalty, while the challenge to the ex parte assessment on the adjournment ground failed.

Ratio Decidendi: Where the applicable rate of tax has been reduced by a valid notification, assessment must conform to the notified rate and proportionate penalty must be worked out accordingly.

---