TaxTMI 
TaxTMI 
1996 (3) TMI 483
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.... (for short, "the Act") and, it is stated, has been doing business since 1981. As and when necessary, on an application being made by the petitioner, the concerned sales tax authorities have been issuing books of way bills in the prescribed form on payment of requisite amount, which is Rs. 30 for every book of 50 way bills. It is the case of the petitioner that on April 3, 1995, an application was made on its behalf for issue of 100 way bills, after making the requisite payment for the same. The first respondent, i.e., the Commercial Tax Officer, Jadcherla, Mahbubnagar, issued only one book containing 50 way bills on April 3, 1995, stating that the remaining 50 way bills would be issued after the 50 way bills issued were exhausted. It is ....
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....ructions that the balance of 50 way bills would be issued after those were exhausted. He then states that the Deputy Commissioner (C.T.), Nalgonda, instructed him "to collect tax and penalty through her letter dated June 15, 1995, on the lost way bills from the petitioner" and that pursuant to the said letter, the petitioner was asked to pay tax and penalty on the lost way bills-which loss was reported on January 31, 1995. He further states that the petitioner voluntarily gave a cheque dated July 13, 1995, for Rs. 64,000 "towards the tax at the rate of Rs. 40,000 turnover for each way bill"; but that when the cheque was presented to the bank, it was returned on the ground that the petitioner stopped payment of that cheque and that thereafte....
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....eafter, an application was once again made for the issuance of 100 way bills on April 3, 1995. He also states that on November 21, 1995, the first respondent never asked him to furnish any indemnity or any security. He further states that the lost way bills were valid for use only till March 31, 1995 and that it is not the case of the respondents that there had been any abuse of the lost way bills. The proprietor, on behalf of the petitioner, also filed W.P.M.P. No. 35906 of 1995 for impleading the Deputy Commissioner (C.T.), Nalgonda Division as the second respondent, in view of the reliance placed by the first respondent on the letter dated June 15, 1995, said to have been addressed by her to the first respondent. On February 1, 1996, we....
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....ontrolled in time, it is going to become a regular practice in trade. As it is 4 such cases in Mahabubnagar district are identified. Hence the collection of tax is a remedial action to safeguard and to protect the Revenue." The learned Special Government Pleader for Taxes produced the record of the second respondent. It contains a note bearing Rc. No. 1 of 1995-96, dated June 15, 1995, addressed to the first respondent which reads as follows: "The Commercial Tax Officer, Jadcheria, is hereby requested to collect the tax and penalty on the lost way bills by estimating turnover as per the records from M/s. Sri Murali Krishna Binny Modern Rice Mill, Shadnagar within (15) days from the date of receipt of this note and report the same." The on....
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....travagant expenses. Our history is replete with instances of these. That cannot be now. The State can meet its expenses only by demands in accordance with law. We, therefore, have to hold that the letter of the second respondent dated June 15, 1995, addressed to the first respondent is wholly misconceived and the imposition advised thereunder, i.e., "tax and penalty on the lost way bills" has no authority of law. It is wholly arbitrary, unauthorised and high-handed. This illegal act of unauthorised imposition is further compounded by the presentation of the cheque of Rs. 64,000 for collection and by issuance of notice dated October 10, 1995, by the first respondent to the petitioner. It is not the case of the respondents that anything has ....
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....de use of the same. It is also an admitted fact that even thereafter, on an application made by the petitioner on April 3, 1995, for the issuance of 100 way bills, the first respondent issued to the petitioner a book containing 50 way bills. It is not the case of the first respondent that at that time any demand of security by way of indemnity bond was made. We fail to understand how the respondents can make an oral demand for furnishing of security long afterwards when nothing has been found against the petitioner as regards any abuse or misuse of any way bill. It would have been a different matter if any such was found. We also notice that under rule 45(4)(vi) "any dealer giving an incorrect and untrue declaration shall be deemed to have ....