RAM NIWAS SANT LAL Vs. SALES TAX OFFICER

JUDGEMENT

(1.) In this petition the petitioner who is a dealer in cotton yarn seeks certiorari against an order passed under the U.P. Sales Tax Act assessing it to sales tax on the turnover of sales of cotton yarn in the assessment year 1962-63. The connected petitions are also petitions for certiorari against orders passed under the Sales Tax Act assessing the petitioners, who are all dealers in cotton yarn, on the turnover: of their sales of cotton yarn in the assessment year 1958-59 or subsequent assessment years. In some of the connected petitions the petitioners also seek certiorari against orders passed by the Sales Tax Officers rejecting the petitioners' applications for rectification of the assessment orders under Section 22 of the Act, which applications were made within three years of the assessment orders, but more than one year after they were passed. All the rectification applications were dismissed by the Sales Tax Officers on the ground that there was no apparent error in the assessment orders.

(2.) These petitions came up for hearing before our brother Manchanda, J., who has referred them to a larger Bench because he considered that the questions raised before him call for an authoritative decision. The petitioners in all the petitions have been assessed to sales tax at the rate of 2 nP. per rupee of turnover of sales of cotton yarn made by the petitioners to consumers; the sales in all the petitions are the last sales in a series of sales.

(3.) Under Section 3 of the Sales Tax Act, subject to the other provisions in the Act every dealer has to pay a tax at the rate of 2 nP. per rupee on his turnover of the assessment year. This is the general provision and under it sales tax is payable on the turnover of every sale in a series of sales and at the fixed rate of 2 nP. per rupee. Section 3-A reads as follows :( 1) Notwithstanding anything contained in Section 3, the State Government may, by notification..., declare that the turnover in respect of any...class of goods shall not be liable to tax except at such single point in the series of sales by successive dealers as the State Government may specify. (2) If the State Government makes a declaration under Sub-section (1) it may further declare that the turnover in respect of such goods shall be liable to tax at such rate not exceeding ten naye paise per rupee as may be specified.