COMMISSIONER OF SALES TAX Vs. SWADESHI POLYTAX LTD

JUDGEMENT

(1.) This Appeal is against the Judgment dated 13th October, 1998 passed by the Allahabad High Court.

(2.) Briefly stated the facts are as follows. The Respondent is a manufacturer and dealer of Polyester Staples Fiber. It had collected, from its customers, tax in excess of what was prescribed. It is an admitted position that these amounts were deposited with the Government. The Respondent had challenged the assessment and its Appeal was allowed. As the tax liability was held to be lower, the concerned Officer passed an Or der of refund but directed that the amount be deposited in the Treasury in view of Section 29-A of the U.P. Trade Tax Act.

(3.) In the Appeal, the Deputy Commissioner (Appeals) granted relief to the extent of Rs. 417/- but confirmed the Order of the Assessing Authority directing deposit of the balance amount. The Respondent then filed an Appeal before the Trade Tax Tribunal who directed refund of the excess amount in spite of the provisions of Section 29-A of the U. P. Trade Tax Act. The Revision filed by the Appellant was dismissed by the High Court by the Impugned Judgment. The High Court followed two earlier Judgments of that Court one of which was the case of one Kheria Brothers. In this case, relying on the Judgment of this Court in the case of State of U.P. and Anr. vs. M/s Anna-purna Biscuit Manufacturing Co. reported in (1974) 3 SCC 121, the Allahabad High Court struck down Section 29-A as being beyond the legislative competence of the State Government. At the time the impugned Judgment was passed an Appeal, against the High Courts Judgment in Kheria Brothers case, was pending in this Court.