RAGHUNANDAN PRASAD MOHANLAL Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) This is an assessee's appeal by certificate, arising from a writ petition filed by the appellant in the High Court of Allahabad. The appellant is a partnership firm carrying on business of manufacturing flour etc. The dispute in this case relates to the sales tax levy on the appellant for four different periods viz. from (1) 1-4-1956 to 30-9-56; (2) 1-10-1956 to 31-3-1957; (3) 1-4-57 to 31-3-58 and (4) 1-4-58 to 31-3-59.

(2.) In the writ petition the assessee challenged the validity of 2 notifications issued by the Government of U. P. The first of those notifications was published as Notification. No. ST-909/X dated March 31, 1956 and the second was published as Notification No. ST-6069/X-1097-57 dated September 30, 1956. The High Court came to the conclusion that though the first notification was struck down by that Court earlier, it has now been revalidated by U. P. Sales Tax (Validation) Act, 1958 and hence the validity of that notifiiation is not open to challenge. It upheld the contention of the appellant that the second notification No. ST-6069/X-1097-57 dated September 30, 1956 is invalid. But in view of its conclusion that the first notification has been properly revalidated, it held that the appellant was not entitled to any relief. It accordingly dismissed the writ petition.

(3.) The U. P. Sales Tax Act came into force on April 1, 1948. On June 7, 1948, the Province of U. P. issued notification No. ST-l19/X-928 under S. 4 of that Act exempting Atta, Maida, Sooji and bran and all cereals from payment of sales tax with effect from April 1, 1948. Thereafter the Parliament passed the Essential Goods (Declaration and Regulation) of Tax on sales and Purchase in order to give effect to Art 286 (3) of the Constitution. That Act declared cereals, Atta, Maida, Sooji and Bran as essential goods. In view of that Act no law of a state Legislature imposing levy or authorising imposition of tax on sale or purchase of essential goods could take effect without the prior assent of the President. The U. P. Sales Tax (Amendment) Ordinance. No. 9 at 1956 was promulgated with the prior assent of the President authorising the State Government to impose rules tax on essential goods from April 1, 1956 Thereafter the state Government issued Notification No. ST-909/X -dated March 31, 1956 under Section 3 of the U.P. Sales Tax Act, 1948 imposing sales tax of six pies per rupee on sales of Atta, Maida and Sooji. That notification was to take effect from April 1, 1956. As a result of that notification exemption given to Atta, Maida and Sooji under notification No. 911/X dated March 31, 1956 was withdrawn. The above ordinance was replaced by an Act of U. P. Legislature (Act 19/56). That Act was known as U. P. sales Tax (Amendment) Act, 1956. It was published in the U. P. Gazette extraordinary dated May 28, 1956. on September 11, 1956, Article 286 of the Constitution was amended thereby taking away the requirement of obtaining the prior assent of the President. On September, 30, 1956 the U. P. Government issued notification No. ST-6069/X-1097-56. dated September 30, 1956 imposing single point tax on Atta, Maida and sooji with effect from October 1, 1956. That notification was purported to have been issued under Section 3-A of the U. P. Sales Tax Act 1948. On January 5, 1957 the Central Act No. 52 of 1952 was replaced by Central sales Tax Act. U. P. Act 19 of 1956 referred to earlier was declared ultra vires the Constitution by the High Court of Allahabad on May 9 1957. That Act and the notifications issued on March 31, 1956 were attempted to be validated by U. P. sales Tax, Act (Validation) Amendment Act, 1957 (Act No. 24 of 1957) which was published in the U. P. Gazette on September 3, 1957 after obtaining the assent at the President on Angust 31, 1957. That Act again was declared ultra vires the Constitution by the Allahabad High Court . Thereafter the U. P. Sales Tax (Validation) Act, 1958 (U. P. Act 15 of 1958) was enacted. It received the assent of the President on May 3, 1958. It was published in the U. P. Gazette on May 6, 1958. It was given retrospective effect as from March 31,1956. The validity of Act 15 of 1958 has been upheld both by the Allahabad High Court as well as by this Court. This in short is the history of the legislations with which we are concerned in this case.