Liability to pay tax accrues by virtue of the charging section alone, though quantification and of the amount payable is postponed.

HARI LAL AGRAWAL, J.

1. The present writ application has been filed for a writ of mandamus to the respondents to refund a sum of Rs. 1,10,125/- deposited by the petitioner company as profession tax under the provisions of the Bihar Taxation on Trades, Professions, Callings and Employment Ordinance, 1973 (Ordinance No. 120 of 1973).

2. The main ground which has been urged on behalf of the petitioner is that before the liability could be assessed the Ordinance itself had expired and, therefore, the amount deposited by the petitioner in advance became refundable.

3. The relevant facts, briefly stated, are as follows : In the State of Bihar municipalities, municipal corporations and similar local bodies were empowered under the State laws to levy tax on trades, professions, callings and employments within their own spheres, but this taxation measure was not working well. The State Government with an intention to raise an additional resource, decided to take over the administration of profession tax and to extend its application to the whole of the State of Bihar. Accordingly the said Ordinance No. 120 of 1973, was promulgated with effect from 1-10-1973 and its administration was entrusted to the Commercial Taxes Department.

4. Under the Ordinance, salary or wage earners were liable to pay tax at certain rates, subject to a maximum of Rs. 250.00 in a year. The Ordinance also became applicable to the employees of the public sector undertakings and autonomous organisations. The employer of each such unit was to obtain certificate of registration from the prescribed authority as indicated in S.4. He had also to furnish returns in the prescribed form in respect of the salaries and wages paid in a month together with the tax deducted by him within 15 days of the expiry of that month. For failure on the part of an employer to discharge these obligations, there were provisions in the Ordinance for imposition of penalties. The person responsible for the payment of salary was deemed to be personally in default in respect of the tax in case he failed to pay it to the State Government account, as required, after deducting it, or if he did not deduct the due amount of tax.

5. After the promulgation of the Ordinance the petitioner was served with a notice dated 27-12-73 (Annexure 1) by respondent No. 2, the Assistant Commissioner of Commercial Taxes, Singhbhum, asking it to get registration of the organisation done and take steps for payment of the tax under the provisions of the Ordinance at an early date. It is in pursuance of this notice that the petitioner deposited a sum of Rs. 1,10,000.00 under Treasury Chalan dated 19-3-1974, representing the professional tax payable by its employees on their wages/salaries for the period from 1-10-1973 to 28-2-1974 on estimate basis, and any difference with the estimated amount was to be adjusted while depositing the tax for March, 1974.

6. The aforesaid Ordinance was followed by Ordinance No. 5 of 1974, and the petitioner, as stated in para. 18 of the writ application, in spite of application for registration, was not given registration certificate nor any assessment of tax was made and the amount deposited by it was "subject to the final accounting and adjustment after the assessment of the taxes as and when done."

The Ordinance, however, was withdrawn and, according to the petitioner"s case, the Government had decided to refund the entire amount deposited by the petitioner and for this purpose it has relied upon the letter dated 29-4-1974 issued by respondent No. 2 to the Commissioner of Commercial Taxes (Annexure 3). But reading Annexure 3 it appears that respondent No. 2 had simply asked clarification from the Commissioner of Commercial Taxes regarding the Government decision in the matter of refund. The petitioner, however, by letter dated 24-6-1973 made a demand from respondent No. 2 of the said amount of Rs. 1,10,125/- including the enrolment fee of Rs. 125/- and thereafter also issued r