ASHAPURA MINERAL COMPANY Vs. STATE OF GUJARAT

JUDGEMENT

(1.) . In these petitions, the petitioners, who are assesses under the Gujarat Sales Tax Act, 1969 (hereinafter referred to as the act) are challenging the constitutional validity of S. 47(4A) of the act. In special Civil Application no. 5283/88 the validity of S. 45(5) is also questioned.

(2.) . The petitioners are all registered dealers under the act. They did not pay the tax due within the prescribed time and / or within the time specified in the notices issued under section 47(4) of the act. As a result thereof they are called upon to pay interest on the amounts of tax not so paid or on any less amount thereof remaining unpaid. That was challenged by some petitioners by way of appeals, but the same were dismissed. The petitioner question the validity of S. 47(4A) which provides for payment of interest on amount of tax not paid at the rate of 24% per annum and also the assessment orders or orders passed in appeals in so far as they relate to levy of interest. According to the petitioners, the said provision is ultra vires the legislative powers of the state legislature and also Art. 14, 19(1)(8) and 300A of the constitution. Section 45(5) is also challenged on the same grounds.

(3.) . At the hearing of these petitions, learned advocated appearing for the petitioners did not press their contention that section 47(4A) is ultra vires articles 19(1)(8) and 300A. no separate submissions were made to show how section 45(5) is violative of any provision of the constitution... What the court is required to consider and decide is a) whether it was beyond the competence of the state Legislature to enact S. 47 (47A); h whether S. 47(4A) is ultra vires art. 14 and 6 what is the correct interpretation of S. 47(4A) as regards the date from which or the period for which interest becomes payable.