CHBOTABHAI JETHABHAI PATEL AND CO CHHOTABHAI JETHABHAI PATEL AND CO Vs. STATE OF UTTAR PRADESHS:SALES TAX OFFICER AGRA

JUDGEMENT

(1.) (Majority view:S. K. Das, A. K. Sarkar, M. Hidayatullah N. Rajagopala Ayyangar and J. R. Mudholkar, JJ.)) This judgment will dispose of two matters which arise out of the same proceedings under the U. P. Sales Tax Act (1) a petition under Art. 32 and (2) an appeal against the judgment and order of the High Court of Allahabad passed in proceedings taken under Art. 226 of the Constitution.

(2.) One of the questions that arises in these two matters is the same which arose and has been decided in W. P. No. 79 of 1959 in which the judgment has been delivered today.

(3.) The facts giving rise to these two matters are these:The petitioner firm is a partnership firm carrying on business of selling biris and although its principal office is at Nadiad (Bombay State) it has a branch office at Agra in U. P. where biris manufactured by it are brought and sold. The firm was registered as a dealer under S. 8 of the U. P. Sales Tax Act (Act 15 of 1948) hereinafter called the 'Act' under which a notification giving exemption in regard to sales tax on certain articles was notified by a notification of December 14, 1957, which has been set out at another place in this judgment. On February 27, 1959, the Sales Tax Officer, Agra, passed a provisional order of assessment of sales tax for the quarter from April 1, 1958 to June 30, 1958. The tax so assessed was Rs. 62,500. It is alleged that no notice was given to the petitioner firm. The notice of demand was issued on the same date. An appeal was taken against this order of assessment to the Judge (Appeals) and an application was made to the Commissioner of Sales Tax for a stay of the realisation of the tax assessed. The Commissioner on April 28, 1959 directed that if half of the amount assessed was deposited by the petitioner by April 30, 1959, the payment of the remaining amount shall be stayed pending the final assessment. On April 30, 1959, the petitioner firm deposited half the tax assessed i.e. Rs. 31,250.