ANAND SUGAR MILLS Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) This Appeal by certificate is directed against the judgment and order of the Allahabad High Court dismissing the Writ Petition filed by the Appellant Firm challenging the validity of a notice dated April 21, 1970, demanding Rs. 1,76,788 on account of interest on delayed payment of purchase tax under the U. P. Sugarcane (Purchase Tax) Act, 1961 (U. P. Act No. IX of 1961), and a recovery certificate dated March 6, 1970 for Rs. 80,072.95 on account of cane price and interest thereon under the U. P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 (U. P. Act No. XXIV of 1953), issued by the Cane Commissioner, U. P., and a notice dated April 21, 1970, from the Tahsildar, Khalilabad, demanding payment of the said sum of Rs. 80,072.95.

(2.) The facts which have given rise to this appeal lie within a narrow compass. The Appellant Firm carries on the business of manufacturing sugar at Khalilabad in the District of Basti in the State of Uttar Pradesh. By his notice dated December 14, 1967, the Cane Commissioner, U. P., called upon the Appellant Firm to deposit in the Government Treasury within 15 days a sum of Rs. 1,79,870 due on account of interest on delayed payment of purchase tax under the U. P. Sugarcane (Purchase Tax) Act, 1961, up to October 31, 1967. The said notice concluded by stating "All the papers for the verification of the figures of the amount of interest can be seen in the office of the Cane Inspector." By its reply dated December 22, 1967, the Appellant Firm informed the Sugarcane Inspector, Gorakhpur, that it was sending its clerk to him for the purpose of receiving the details of the said amount for doing the needful in the matter. By his notice dated April 21, 1970, the Tahsildar, Khalilabad, intimated to the Appellant Firm that the Cane Commissioner had sent a recovery certificate for Rs. 1,76,788 "on account of interest on purchase tax ending 31-3-1969" and called upon the Appellant Firm to deposit the said sum in the Treasury by May 15, 1970, failing which coercive measures would be adopted. A copy of the said notice was annexed as Annexure "C" of the Appellant Firm's Writ Petition. By his recovery certificate dated March 6, 1970, forwarded to the Collector, Basti, the Cane Commissioner, U. P., certified that a sum of Rs. 80,072.95 was due by the Appellant Firm as "arrears of price of sugarcane, commission and / or interest thereon for the period ending 31-1-1970" due by the Appellant Firm to the Co-operative Cane Development Unions whose names were mentioned in the said certificate. The said certificate further stated that interest included in the certificate had been charged at 71/2 per cent per annum from the due date of payment and that further interest at the same rate should be realized on all unpaid amounts till the date of the final payment. Copies of this certificate were sent inter alia to the Appellant Firm and to the Honorary Secretaries of Co-operative Cane Development Unions of Khalilabad, Shahjahanwa, Govind Nagar and Gaur. A copy of this recovery certificate was annexed to the Appellant Firm's Writ Petition as Annexure "D". By its letter dated March 9, 1970 the Appellant Firm forwarded to the District Cane Officer, Basti, a copy of memorandum of settlement bearing the same date in which it was stated that the Appellant Firm and the Co-operative Cane Development Union Ltd., Khalilabad, had reconciled their amounts up to 1968-69 relating to cane price and interest thereon and commission as set out in the said memorandum. The said memorandum of settlement further stated that two cheques, both dated March 9, 1970, on account of cane price and interest thereon were enclosed in full and final settlement of such account. By its letter dated March, 11, 1970 addressed to the Cane Commissioner, U. P., the Appellant Firm raised various contentions regarding the amount claimed in the said recovery certificate dated March 6, 1970. In view of the order we propose to pass, it is unnecessary to refer to the contentions raised in the said letter. By his notice dated April 21, 1970, the Tahsildar, Khalilabad, intimated to the Appellant Firm that the Cane Commissioner had sent to him the said recovery certificate for Rs. 80,072.95 and called upon the Appellant Firm to deposit the said amount in the Government Treasury by May 15, 1970. A copy of the said notice was annexed to the Appellant Firm's Writ petition as Annexure "E".

(3.) The Appellant Firm thereupon filed a Writ Petition in the High Court, being Civil Misc. Writ Petn. No. 2088 of 1970, challenging the validity of the said notices and recovery certificate, namely, Annexures "C", "E" and "D" to the Writ Petition. The main contentions of the Appellant Firm in the said Writ Petition was that so far as the notice demanding interest on delayed payment of purchase tax, namely, Annexure "C" to the Writ Petition, was concerned, no interest could be demanded until an order assessing or imposing such interest was passed. The other contention was that the said notice gave no details or particulars of the amount claimed and that so far as the said recovery certificate dated March 6, 1970, and the said notice dated April, 21, 1970, namely, Annexure "D" and "E" to the said Writ Petition, were concerned, part of the amount shown as due had already been paid or adjusted and the rest was the subject-matter of pending arbitration proceedings.