TaxTMI 
TaxTMI 
1971 (7) TMI 53
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....r 8, 1966, the High Court allowed the petitions and quashed the demand notices. The appeals may be divided into two categories. In C. As. Nos. 1449 and 1453 of 1967, returns had been duly filed as contemplated by section 5 of the Act but no tax had been deposited as required by section 6. Demand notices were issued in respect of the tax payable pursuant to the returns some years later. Proceedings were also taken, as no payment was made for recovery of the tax as arrears of land revenue. In the other four appeals the returns were never filed but it appears the authorities took certain proceedings under section 7 of the Act and in some cases accounts of the respondents were checked and their liability determined. When demand notices were sen....
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....sary. 9. Penalty for non-payment of tax.--Where the whole or any portion of the tax payable to the State Government in respect of any stage carriage for any month or portion thereof in pursuance of sections 6, 7 and 8 has not been paid to it in time the Tax Officer may, in his discretion, levy in addition to the tax so payable, a penalty not exceeding 25 per cent. of the maximum tax which would have been payable to the State Government if the stage carriage had carried its full complement of passengers during such month or portion thereof. 10. Recovery of tax, etc.--(1) In the cases referred to in sections 7, 8 and 9 the Tax Officer shall serve on the operator a notice of demand for the sums payable to the State Government and the sums ....
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.... the contention which prevailed with the High Court that even where returns had been submitted but the tax has not been paid the Tax Officer is bound to make an order before serving a notice of demand even though the demand is strictly in accordance with the returns which have been submitted. Section 7 rules out any such course to be followed by the Tax Officer. It is only when the returns have not been submitted or when returns submitted are found to be incorrect and incomplete that the Tax Officer has to make an inquiry and determine the sum payable by the operator by way of tax. Similarly, if there has been escapement of tax, proceedings have to be taken under section 8 and an order has to be made after an enquiry. The position would be ....