Kala Enterprises vs Deputy Commissioner of Commercial Taxes, Assessments-4, Bangalore Rural Division

G. Parti Basavana Goud, J.—Heard on merits.

The petitioner is proceeded against in a proceeding u/s 13(3)(b) of the Karnataka Sales Tax Act, 1957, for recovery of arrears of sales tax. Initially, notice was issued to the petitioner. Even though the said notice was not served, the learned Magistrate, relying upon a decision of this Court in S. Dasappa and Company Vs. The Commercial Tax Officer, Mysore Circle, Mysore, , has found that no notice is necessary. He has accordingly directed issuing of fine levy warrant, aggrieved by which, the petitioner has approached this Court.

This very decision relied upon by the learned Magistrate was referred to in a subsequent decision by a learned single Judge of this Court in Sapna Agencies v. Deputy Commissioner of Commercial Taxes (Criminal Revision Petition No. 315 of 1993), disposed of on September 20, 1993. The learned single Judge, therein, pointed out as to how the law laid down in S. Dasappa and Company Vs. The Commercial Tax Officer, Mysore Circle, Mysore, stood overruled in view of the contrary view taken in the Division Bench decision of this Court in K. Lakshminarayana Holla v. Commercial Tax Officer (S.T.R.P. No. 88 of 1975 decided on July 12, 1978). In the said Division Bench decision, viz., K. Lakshminarayana Holla v. Commercial Tax Officer (S.T.R.P. No. 88 of 1975, disposed of on July 12, 1978), His Lordship Justice E.S. Venkataramaiah, as he then was, speaking for the Bench, held that, it would be necessary to afford an opportunity to the petitioner-assesses to make his submission, before any further action is taken by the learned Magistrate in the proceeding concerned u/s 13(3)(b) of the Karnataka Sales Tax Act, 1957. In view of this decision of the division Bench, it has to be concluded that the learned Magistrate erred in dispensing with the notice to the assessee, and in straightaway issuing fine levy warrant.

Petition is, therefore, allowed. Impugned order is set aside. The matter is remitted to the learned Magistrate to proceed afresh, after issuing notice to the assessee who is the petitioner herein and who is the respondent before the learned Magistrate, and to afford him an opportunity to make his submission.