HOT MILLIONS Vs. UNION TERRITORY CHANDIGARH

JUDGEMENT

(1.) THE petitioners who are running a fast food restaurant under the name and style of the Hot Millions have filed this petition for issuance of a mandamus directing the respondents to cancel their sales tax number and refund the tax deposited for a year by them.

(2.) THE background which led to the filing of the writ petition is that the petitioners' concern was earlier served a notice for payment of sales tax by respondent No. 2 holding that the petitioners were liable to pay the tax and compulsory registration. This action of the respondents was challenged by the petitioners through Civil Writ Petition No. 199 of 1983 [reported in [1986] 62 STC 342. ] which was allowed by this Court holding that the petitioners were not liable to be registered and pay the tax as they were not carrying on any sale of the items as envisaged in the Punjab General Sales Tax Act, 1948. Thereafter, the petitioners made requests to the authorities, initially by serving a notice and subsequently by a memorandum dated 20th July, 1987, for cancellation of their registration number and refunding the amount of tax deposited by them earlier, but no action in the matter was taken by the respondents.

(3.) I have considered the submissions made by both the sides. Admittedly, the petitioners had earlier filed a civil writ petition against the action of the respondents, and vide order dated 4th December, 1985 [reported in [1986] 62 STC 342. ], this Court had allowed the claim of the petitioners quashing the registration number of the petitioner' concern. It was incumbent upon the respondents to comply with the said order of this Court. The counsel for the respondents has not been able to show or produce any order or direction of the Supreme Court staying the operation of order of this Court. Mere filing a special leave petition by the respondents in the Supreme Court would not operate as stay order. Under these circumstances, the respondents are directed to implement the order of this Court passed in Civil Writ Petition No. 199 of 1983 on 4th December, 1985 [reported in [1986] 62 STC 342. ], within two months from the date of receipt of a copy of this order. In case the registration number of the petitioners' concern is not cancelled and the tax deposited by them earlier for the period in dispute is not refunded, the petitioners shall be entitled to claim interest on the said amount from the respondents at the rate of 10 per cent per annum.