K. Vinod Chandran, CJ. –

“There is a tendency for valiant tax executives clothed with judicial powers to remember their former capacity at the expense of the latter. In a welfare state and in appreciation of the nature of the judicial process, such an attitude, motivated by various reasons, cannot be commended. The penalty for deviance from these norms is the peril to the order passed. The effect of mala fides on exercise of administrative power is well-established.”

[R.S. Joshi, Sales Tax Officer, Gujarat and Others vs. Ajit Mills Limited and Another, (1977) 4 SCC 98]

2. This is a classic case of a valorous overreach by a tax executive; recovering the assessed tax due, just after a day of dismissal of the appeal; when there was a further appeal provided and the Tribunal before which such an appeal is to be filed was not constituted.

3. On facts, suffice it to notice that the assessee carries on the business of manpower supply including security and cleaning services to different establishments; in which is included Government Polytechnic Institutions. The issue arose as to whether the services provided to Government Polytechnic Institutes would fall under the exemption stipulated in