1986 (6) TMI 240

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....tioner is an assessee under the Karnataka Sales Tax Act and carrying on business of hulling of paddy in Mandya. On 26th January, 1983 the Commercial Tax Officer (Intelligence), Mysore Circle, visited the business premises of the petitioner and on scrutiny of the books of accounts seized some of them. He thereupon issued a show cause notice on 27th January, 1983. The petitioner appeared before the ....

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....hat remains for consideration is whether the levy of compounding fee of Rs. 3,000 is a valid levy? It is to be noted that out of Rs. 10,000 collected by the respondent from the petitioner Rs. 7,000 represents the tax which is said to be due in respect of the alleged suppressed turnover and Rs. 3,000 is the compounding fee. One another factor which is necessary to be noticed is that the petitioner ....

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....time that was referred to in the show cause notice. 4.. The show cause notice (annexure C) is therefore liable to be set aside for more than one reason. Firstly, that the said levy is opposed to the procedure that is contemplated under the provisions for levy of composition fee under section 31. Secondly, the respondent has quantified the tax even before the assessment was done on the basis of ....