The firm M/s. Lakshminarayana Rice Mill, Shamsergunj, Hyderabad, was carrying on business of rice milling and the petitioner and one Raja Reddy were partners. The firm was dissolved in the year 1959 and the sales tax authorities, with whom the firm was registered, were informed accordingly. For the year 1959-60, the firm was assessed as per order No. 1008/59/60 dated 30th March, 1962. The turnover was determined at Rs. 3,46,992.14 and the total tax was fixed at Rs. 13,879.12. By the time of the assessment an advance tax of Rs. 6,512.57 was paid by the assessee as demanded by the sales tax authorities. The petitioner aggrieved by the assessment order, filed an appeal to the appellate authority being Appeal No. 267 of 1962-63. The appellate authority by its order dated 14the September, 1962, allowed the appeal and remanded the case for fresh disposal after setting aside the assessment order. No action had been taken by the assessing authority. After a lapse of four years the first respondent issued a notice dated 6th October, 1966, asking the petitioner to produce his account books for the year 1959-60 so as to enable him to make the assessment. The demand of the assessing authority calling upon the firm to produce the account books being illegal and untenable, the petitioner filed a Writ Petition No. 1969 of 1966 on the file of this court. When this writ petition came up for hearing before a Bench consisting of Jaganmohan Reddy and Kumarayya, JJ. (as they then were), on 6th February, 1967, the Government Pleader represented to the court that the proceedings had been closed and there was no question of any assessment. On that assurance the court dismissed the writ petition. The petitioner avers that as the assessment proceedings were dropped by the authorities concerned, there was no leviable for the year 1959-60. The petitioner sent a notice to the second respondent, Commissioner of Commercial Taxes, asking him to pay back the amount illegally detained by him without any power or authority whatsoever. The second respondent had not complied with the notice. In this writ petition, the petitioner seeks a writ of mandamus directing the respondents to give complete effect to the course of the assessment proceedings by refunding the amount of Rs. 6,512.57 levied and collected from him.

The Commercial Tax Officer, 1st Circle, Hyderabad, which is the first respondent herein, has filed a counter-affidavit stating that in the appeal preferred by the petitioner, the Assistant Commissioner, Commercial Taxes, considered the question of levy of tax on a turnover of Rs. 68,641.09 relating to the sales of rice. The appeal was allowed and the matter was remanded by the Assistant Commissioner for fresh disposal on 14th September, 1962. It is thus averred that the assessment relating only to Rs. 68,641.09 was set aside in appeal and not the entire assessment. After giving deduction of the tax allowed in appeal, the petitioner was still liable to pay a sum of Rs. 8,350.56. The petitioner paid a sum of Rs. 8,642.79 and thus the petitioner is only entitled to a refund of Rs. 292.93.

From the counter filed by the respondents, the first question to be considered is whether by the appellate order, the assessment order made by the first respondent had been set aside only in part or in full. To determine that it is necessary to refer to the appellate order. Before the Assistant Commissioner of Commercial Taxes the appellant had raised two contentions : (1) against the levy of tax on Rs. 68,641.09 and (2) against the rate of tax at 4 per cent on Rs. 3,46,992-14-8 for the year 1959-60. Both these contentions were considered by the appellate authority. As regards the first contention, the appellate authority directed the assessing authority to verify the transactions and conduct inquiries in the matter and pass fresh orders pursuant to the results thereof. The second contention was that the entire turnover of Rs. 3,46,992-14-8 could not be assessed