PRAHLAD RAI Vs. SALES TAX OFFICER MEERUT

JUDGEMENT

(1.) The appellants were served with two notices by the Sales Tax Officer, Hapur for the recovery of Rs. 34,796 44 and Rs. 12,850/ -on account of intere st on arrears of sales tax. The business firms owned by the ancestors of the appellants fell into arrears in respect of sales tax for the years 1952-53 to 1962-63. The appellants, having inherited the properties of the ancestors, were asked to pay the arrears of sales tax. It is the admitted position that the appellants had paid the said arrears. The above-mentioned notices were only in respect of the interest on the amount of arrears so paid. The appellants challenged the notices by way of a writ petition before the High Court. The High Court dismissed the writ petition. This appeal via special leave petition is against the judgment of the High Court.

(2.) The U.P. Sales Tax Act, 1948 was amended and sub-s. (1 -A) was added to S. 8 of the Act. The amendment was introduced by the U.P. Sales Tax (Second Amendment) Act, 1963 which was enforced with effect from January 25, 1964. Sub-s. (I-A) is as under:-

(3.) The appellants contended before the High Court that above quoted S. 8(1 A) having been enforced with effect from Jan. 25, 1964 the arrears of sales tax which became due as a result of assessment made prior to the said date cannot come within the mischief of the said sub-section. The High Court rejected the contention in the following words: