1964 (2) TMI 65 - SUPREME COURT

Validity of section 11(2) of the Hyderabad General Sales Tax Act, No. XIV of 1950 questioned

Held that:- Appeal allowed. The State Legislature was incompetent to enact a provision like section 11(2). We may also add that the provision contained in section 20(c), being consequential to section 11(2), will fall along with it. In consequence it was not open to the Sales Tax Officer to ask the appellant to make over what he had collected from the purchasers wrongly as sales tax. It is not disputed, as appears from the final assessment order of the Sales Tax Officer, that the appellant was not liable to pay the amount as sales tax for the relevant period. We therefore allow the appeal and quash the assessment order dated September 27, 1956, in so far as it is based on section 11(2).