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2009 (7) TMI 1202 - HC - VAT and Sales TaxSales tax on the sale of "Halls" - writ of prohibition, prohibiting the respondents from assessing or levying or collecting more than four per cent. Held that:- When the Commissioner of Commercial Taxes, Chennai, has issued the clarification Nos. 3 and 106 of 2004, dated January 2, 2004 and April 16, 2004, respectively and revised the assessment on earlier occasion and concluded the penalty for excess collection of tax over and above four per cent, treating "Halls" as ayurvedic medicine, another assessing authority, by mere change of opinion, cannot propose to revise the assessment treating the said product as confectionary. Therefore, when the show-cause notice issued by the assessing authority is inconsistent with the circulars in force, the same can be challenged by way of a writ petition. Though the general principle of law is that the writ against show cause is not maintainable, yet if the authority acts contrary to the clarificatory circulars and if it lacks jurisdiction, it can be subjected to judicial review in writ jurisdiction In view of the binding precedents of the circulars issued by the Commissioner of Commercial Taxes, in favour of the assessee this court is of the view that the impugned showcause notice issued contrary to the circulars, is without jurisdiction and it is liable to be set aside and accordingly, set aside and consequently, the petitioner is entitled to the relief sought for in the writ petition.
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