ADARSH BHANDAR ALIGARH Vs. SALES TAX OFFICER ALIGARH

JUDGEMENT

(1.) This is an application made under Section 4 of the U. P. Sales Tax (Validation) Act, 1958, (U. P. Act No, XV of 1958) for the review of an order of this Court dated 5-5-1957. The respondents- contend that Section 4 is ultra vires of the State Legislature and that the application is accordingly not maintainable.

(2.) The relevant facts are these. On the 31st March, 1956, the Governor of Uttar Pradesh in purported exercise of his powers under Section 3A of the U. P. Sales Tax Act, 1948, issued a Notification, No. ST-905/X. By this Notification the Governor was pleased to declare, inter alia, that the turnover in respect of certain specified classes of goods imported from outside Uttar Pradesh would, with effect from 1-4-1956, be taxed at the rate of one anna per rupee. The classes of goods subject to sales tax at this rate included vegetable ghee, cloth and sugar. The respondent firm carried on business in Aligarh, and on the 14th September, 1956, it was provisionally assessed to sales tax amounting to Rs. 75,000/- on an estimated turnover of Rs. 12,00,000/- on the ghee, cloth and sugar imported by it from outside Uttar Pradesh at the rate of one anna per rupee. A demand notice in respect of this amount dated 15-9-1956, was thereafter served on the firm.

(3.) The respondent firm thereupon filed a petition in this Court under Article 226 of the Constitution in which it challenged the validity of the assessment order and subsequent notice of demand. That petition was allowed by this Court by its order dated 5-5-1957, Adarsh Bhandar v. Sales Tax Officer, Aligarh, 1957-8 STC 666: ((S) AIR 1957 All 475) (FB), and a writ in the nature of certiorari was directed to issue quashing the assessment order dated the 14th September and the demand notice dated 15-9-1956. As a consequence of this order the State Legislature enacted the U. P. Sales Tax (Validation) Act, 1958, which came into force on 6-5-1958. Sections 3 and 4 of that Act are material and they read as follows: "3. Validation of certain notifications and action taken in pursuance thereof.-- (1) Notwithstanding any judgment, decree or order of any court, the notifications specified in part A, Part B and Part C of the Schedule shall be deemed to have been issued in exercise of the powers conferred respectively by Section 3, Section 3-A and Section 4 of the U. P. Sales Tax Act, 1948 as if the said sections were in force on the date on which the notifications were issued in the form in which they were in force immediately before the commencement of this Act and all the said notifications shall be valid and shall be deemed always- to have been valid and shall continue in force until amended, varied or rescinded by any notification issued under any of the said sections. (2) Anything done or any action taken (including any order made, proceeding taken direction issued, jurisdiction exercised, assessment made or tax levied or collected) purporting to have been done or taken in pursuance of any of the notifications specified in the Schedule shall be deemed to be, and to have been, validly and lawfully done or taken.