TMI Blog1973 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... emption from the payment of interest. - C.A. No. 543 of 1970, - - - Dated:- 23-4-1973 - HEGDE K.S. AND KHANNA H.R. JJ. S.C. Manchanda, Senior Advocate (O.P. Rana, Advocate, with him), for the respondents. A.K. Sen, Senior Advocate (Yogeshwar Prasad, S.K. Bagga, Shakeel Ahmed and Mrs. S. Bagga, Advocates, with him), for the appellant. -------------------------------------------------- The judgment of the court was delivered by KHANNA, J. -This appeal on certificate is directed against the Full Bench decision of the Allahabad High Court whereby that court answered by a majority of two to one the following question referred to it by a Division Bench in the negative against the assessee-appellant: Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was sent by the Sales Tax Officer to the Collector, Allahabad. It was mentioned in the certificate that the aforesaid amount would carry interest at the rate of 18 per cent per annum calculated with effect from February 1, 1965, till the date of final payment and the same too should be recovered as arrears of land revenue in terms of the provisions of section 8(1-A) of the Act. The case of the appellant-firm is that the amount of the sales tax mentioned in the two recovery certificates was paid by it. The appellant, however, contested its liability to pay interest amounting to ₹ 1,38,000 on the amount of sales tax under section 8(1-A) of the Act. A petition under article 226 of the Constitution was consequently filed by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed under this Act shall be paid in such manner and in such instalments, if any, and within such time, not being less than fifteen days from the date of service of the notice of assessment and demand as may be specified in the notice. In default of such payment, the whole of the amount then remaining due shall become recoverable in accordance with sub- section (8). (1-A) If the tax payable under sub-section (1) remains unpaid for six months after the expiry of the time specified in the notice of assessment and demand or the commencement of the Uttar Pradesh Bikri-Kar (Dwitiya Sanshodhan) Adhiniyam, 1963, whichever is later, then, without prejudice to any other liability or penalty which the defaulter may, in consequence of such non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33 to the Act. The material part of section 33 reads as under: In respect of any sum recoverable under this Act as arrears of land revenue the assessing authority may forward to the Collector a certificate under his signature specifying the sum due. Such certificate shall be conclusive evidence of the existence of the liability, of its amount, and of the person who is liable, and the Collector on receipt of the certificate shall proceed to recover from such person the amount specified therein, as if it were an arrear of land revenue. Mr. Sen on behalf of the appellant has argued that it was essential for the Sales Tax Officer to make an assessment order in respect of the interest before he could issue recovery certificate against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be added to the amount of tax and be deemed for all purposes to be a part of the tax. According to section 8(1-A), simple interest at the rate of 18 per cent per annum shall run on the amount of arrears of sales tax from the date specified in that sub-section. It would thus appear that the liability to pay interest is automatic and arises by operation of law. The amount of interest on the date of payment of tax is not constant, but increases from day to day. The amount of interest can, therefore, be not predicated till such time as the arrears of sales tax are paid and it is consequently not possible to specify a definite figure in respect of the interest in the recovery certificate. At the time the arrears of sales tax are paid, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf of the appellant that the Act came into force on the date it received the assent of the President. As against that, Mr. Manchanda on behalf of the respondents stated that the Act came into force on February 1, 1964, the day it was published in the official Gazette. The stand taken by Mr. Manchanda in this respect is correct, because according to clause(b) of sub-section (1) of section 5 of the U.P. General Clauses Act, 1904 (U.P. Act No. 1 of 1904), where any Uttar Pradesh Act is not expressed to come into force on a particular day, then in the case of an Uttar Pradesh Act made after the commencement of the Constitution, it shall come into operation on the day on which the assent thereto of the Governor or the President, as the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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