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2015 (11) TMI 1388 - HC - VAT and Sales TaxQuashing of garnishee notice - Recover of sales tax from forest Department - Held that:- Section 17 merely requires a person, from whom money is due to the dealer, to make payment, of the amount referred to in the notice, to the Commercial Tax Department. On payment, the said person is entitled to claim discharge of their liability to the dealer for a like sum. However the notice, under section 17(1) of the Act, can be issued by the assessing authority only if any amount is due from the dealer towards arrears of tax, interest, penalty or fee. The premise, underlying a notice issued under section 17(1), is that the dealer is in arrears of sales tax, interest or penalty. In the present case the dealer is the Forest Department of the Government of A. P. which supplied bamboo to the petitioner. - The impugned notice does not even refer to any assessment orders having been passed against the Forest Department of the Government of Andhra Pradesh. While the Commercial Tax Department has not even chosen to file a counter-affidavit, the Forest Department has not denied the petitioner's assertion that no assessment orders were passed by the Commercial Tax Department against the Forest Department of the Government of Andhra Pradesh. The impugned notice relates to arrears of tax, allegedly due from the Forest Department, under the APGST Act for the years 1991-92 to 2004- 05 - in case the Forest Department of the Government of Andhra Pradesh demands payment of sales tax on the bamboo cuts supplied by them, it is always open to the petitioner to challenge such orders in appropriate legal proceedings. - Petition disposed of.
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