DIRECTOR-GENERAL OF SUPPLIES AND DISPOSALS DGS AND D THE PURCHASERS UNDER THE AGREEMENT WERE TO PAY THE SALES TAX CEMENT HINDUSTAN SUGAR MILLS LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS petition arising under article 226 of the Constitution ultimately taken us to the tax law under the Gujarat Sales Tax Act, 1969, and under the Central Sales Tax Act, 1956, and the relevant provisions as they stood on earlier occasions. The question to be decided by us is, as to whether the sales tax authorities were justified in imposing the penalty against the petitioner and also in asking for the interest.

(2.) THE petitioner challenges the validity of the demand of Rs. 4,97,196 under the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Gujarat Act") and Rs. 1,21,024 under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act") by way of penalty under section 45 (5) and interest under section 47 (4a) of the Gujarat Act.

(3.) AT this juncture a reference requires to be made to the communication under which the petitioner-company has been called upon to make payment, both in respect of the penalty and the interest. The schedule annexed to the said communication would go to show that, the sales tax authorities are demanding interest and penalty both for the period commencing from January 1, 1970 and ending in year 1975. According to us, these dates and the years have an important bearing on the matter, when we shall have to examine the question as to whether the interest could have been demanded by the respondent-sales tax authorities, AT this juncture we only notice that the demand is in respect of the abovesaid time-limit, namely, January 1, 1970 to year 1975.