HARI KISHAN Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE petitioner is a partner of the firm M/s. Gopinath Hari Krishna which carried on business during the years 1957-58 and 1958-59 and has since been dissolved. The firm dealt in foodgrains and oil-seeds. On 15th April, 1957, it applied to the Sales Tax Officer, Etawah, for exemption of its turnover of foodgrains from sales tax for the assessment year 1957-58 under the U.P. Sales Tax Act, the application being pursuant to rule 20-B of the U.P. Sales Tax Rules. A sum of Rs. 150 was deposited with the application towards the first instalment of the exemption fee. Subsequently, on 10th September, 1957, the firm made another application for exemption, and deposited two further amounts towards the exemption fee. The Sales Tax Officer held that the firm had not complied with the requirements of rule 20-B and was, therefore, not entitled to an exemption certificate. Acting under rule 20(3) he assessed the turnover of foodgrains to sales tax for the assessment year 1957-58 by his assessment order dated 28th March, 1962. By that assessment order he assessed the turnover of oil-seeds also, applying a rate of three pies per rupee. The firm proceeded in appeal. The Assistant Commissioner (Judicial) Sales Tax, allowed the appeal on the ground that the Sales Tax Officer had not investigated whether even if the firm was not entitled to exemption from the commencement of the assessment year, it was entitled to exemption from any subsequent date in the assessment year. Upon that he set aside the assessment order and remanded the case by his order dated 4th May, 1965. The firm then applied in revision against the order of remand and a number of contentions were raised before the Additional Judge (Revisions) Sales Tax. Among them, the firm urged that the turnover of oil-seeds was not liable to assessment because there was no valid notification laying down the rate of tax in respect of such turnover, that no fresh assessment could be made pursuant to the remand order because of the bar of limitation, and that the Sales Tax Officer, Etawah, had no jurisdiction to assess the firm. These contentions were rejected by the Additional Judge (Revisions) Sales Tax. The petitioner now prays for certiorari against the orders of the sale tax authorities.

(2.) FOLLOWING the assessment made under the U.P. Sales Tax Act, the Sales Tax Officer assessed the firm under the Central Sales Tax Act also for the assessment year 1958-59. Similarly assessments were also made on the firm for the assessment year 1958-59 under the U.P. Sales Tax Act and the Central Sales Tax Act. The history of these three assessments is substantially the same as that relating to the assessment for the year 1957-58 under the U.P. Sales Tax Act. In fact, the revision applications in respect of the four cases were disposed of by the Additional Judge (Revisions) by a common order dated 28th April, 1967. The instant writ petition, Writ Petition No. 2967 of 1967, relates to the case for the assessment year 1957-58 under the U.P. Sales Tax Act, and the connected petitions relate to the remaining three cases.

(3.) PARLIAMENT enacted the Central Sales Tax Act, 1956, and section 14 of that Act specified the commodities which were of special importance in inter-State trade and commerce. These included oil-seeds. Section 15 of the Act imposed the conditions that those commodities would not be taxed at more than one stage and at a rate not exceeding two per cent. of the sale price. Then the U.P. Sales Tax (Amendment) Act, 1956 (U.P. Act No. 19 of 1956) inserted a new section 3-AA in the parent Act in the attempt to bring it into accord with article 286(3) of the Constitution and the requirements of sections 14 and 15 of the Central Sales Tax Act. The new section 3-AA provided that notwithstanding anything contained in section 3 or 3-A the turnover of oil-seeds and the other commodities mentioned therein would not be liable to tax except at the point of sale by the dealer to the consumer and that the rate of tax would not exceed two naye paise per rupee. Section 3-AA came into effect from 1st April, 1956. The section was amended from time to time and in respect of the assessment years 1957-58 and 1958-59 sub-section (1) of section 3-AA provided :