1994 (3) TMI 366 - HC - VAT and Sales Tax

Challenge to Notice Demanding Advance Tax Dismissed

Manwani Traders and Others Versus Commissioner of Sales Tax and Others

The court dismissed the challenge to a notice demanding advance tax under the Entry Tax Act. The petitioner, a trader, contested the notice's validity, ... - Issues:1. Challenge to notice demanding advance tax under Entry Tax Act.Analysis:The judgment pertains to a petition challenging a notice demanding advance tax under the Entry Tax Act. The petitioner, a trader, believed they were exempt from paying sales tax and, consequently, entry tax. However, a Division Bench dismissed writ petitions challenging the Act's validity, affirming the tax liability. Subsequently, the petitioner received a notice to pay advance tax, prompting the current challenge under articles 226/227 of the Constitution of India. The petitioner argued that the notice was deficient as it did not comply with the prescribed form and lacked the required duration of 30 days. They also claimed the right to approach the Commissioner under specific provisions of the M.P. General Sales Tax Act. The respondent contended that the notice was not issued in strict compliance with the rules, rendering the petition futile. The relevant rule specified a 7-day payment period from the notice's service, contingent upon computation and quantification. The respondent acknowledged that computation was pending, rendering the current notice inconsequential. The court held that once the proper notice in prescribed form is issued, the petitioner can seek extensions or installment payment permissions from the Commissioner. The court concluded that the petitioner suffered no prejudice from the current notice, deeming the issue insignificant. The petition was disposed of without costs, as the matter was clarified to the satisfaction of the petitioner.