KHAZAN CH Vs. STATE OF JAMMU AND KASHMIR

JUDGEMENT

(1.) This group of Writ Petitions and Appeals by Special Leave challenges the constitutional validity of sub-secs. (1), (2) and (3) of Sec. 8 of the Jammu and Kashmir General Sales Tax Act, 1962 (J and K Act XX of 1962) and seeks to quash the orders directing the Petitioners and Appellants before us (thereinafter for the sake of brevity referred to as "the Assessees") to pay interest on the amount of tax due according to the quarterly returns filed by them but not paid within the prescribed time.

(2.) All the Assessees are registered as dealers under the Jammu and Kashmir General Sales Tax Act, 1962 (hereinafter referred to as "The Act"). Sub-sec. (1) of Sec. 7 of the Act requires every dealer liable to pay tax under the Act to furnish in the prescribed form a return of his turnover for a year within 120 days from the expiry of that year. Sub-section (2) of Sec. 7 provides as follows:-

(3.) The Assessees filed their quarterly returns within the time prescribed by the Act but without paying the tax due according to such returns. Some of them also filed revised returns thereafter. The tax due was paid by the Assessees after several months and in some cases by instalments. In a few cases, the full amount of tax was not paid even by the date the assessment order in their cases came to be made. In the cases of most of the Assessees, the Assessing Authority levied penalty under sub-section (2) of Section 8 of the Act before making any assessment. In other cases, orders requiring interest to be were made along with the assessment orders. It may be mentioned that in cases where the assessment orders were made, the returns filed by the Assessees were accepted as correct. Those Assessees who are Appellants before us filed writ petitions in the Jammu and Kashmir High Court challenging the validity of Section 8 of the Act under which interest was sought to be recovered from them as also the demand for payment of interest. These writ petitions were heard along with other writ petitions in which other questions arose. The High Court dismissed all these writ petitions but made no order as to the costs thereof.