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TMI Blog1977 (1) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 7 of U.P. Act 19 of 1956) of the U.P. Sales Tax Act, 1948, hereinafter referred to as the Act, to submit its returns of sales tax on the basis of its turnover of the previous years and filed the returns accordingly. The assessment years for which the returns were filed were 1948-49 and 1949-50, and the corresponding previous years were November 1, 1946, to October 31, 1947, and November 1, 1947, to October 31, 1948, respectively. The rate of sales tax for certain commodities was enhanced during the assessment year 1948-49 with effect from June 9, 1948, and for some other commodities with effect from July 1, 1948. The dealer contended that sales tax on its entire turnover of the two previous years should be assessed at the old rate of 3 pies per rupee and not at the enhanced rate of 6 pies per rupee because the enhancement was made after bath the previous years had expired. The Sales Tax Officer rejected that contention and assessed the sales tax at the enhanced rates. The appellate authority, however, upheld the dealer's contention and the matter went up in revision to the Judge (Revisions). He upheld the order of the Sales Tax Officer. The dealer applied for a reference und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pass an appropriate order under section 11(6) of the Act in accordance with the law and in the light of the observations made by the High Court. This is why the State of Uttar Pradesh and others have come up to this Court in appeal. We have made a mention of the facts bearing on the controversy, and we may as well refer to the relevant provisions of the law. The Act came into force on April 1, 1948. It provided for payment of the sales tax on several commodities at a uniform rate of 3 pies in the rupee. Section 3-A was inserted by Act 25 of 1948 conferring certain powers on the Provincial Government. The Provincial Government issued a notification under that section declaring, inter alia, that with effect from June 9, 1948, the rate of sales tax in respect of the turnover of the goods specified in the notification shall be as stated in the schedule to the notification. The rate of tax was thus enhanced to 6 pies per rupee. The enhancement of the tax was challenged on the ground that it was not permissible in the case of an assessee who had taken the option to submit his return on the basis of the turnover of the sales of the previous year as he was liable to pay the tax accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (j) of section 2 of this Act, as it stood prior to its amendment by section 2 of U.P. Act XIX of 1956." The validity of the aforesaid section 31 of the Act came up for consideration in this Court in Commissioner of Sales Tax, U.P. v. Bijli Cotton Mills, Hathras[1964] 15 S.T.C. 656 (S.C.); [1964] 7 S.C.R. 383., and was upheld. It was held that as the legislature had amended the Act and declared that notwithstanding the option exercised by the assessee the tax would have to be computed in the light of the rates prevailing in 1948-49 as if they were projected upon the turnover of the previous year, the legislature had expressly stated that that rule would prevail as if it were in force during the assessment year and all assessments would be made in the light of the amended provision. It was observed that in taking that view this Court was seeking to apply a legislative provision which was, by express enactment, in force at the time when the liability arose, for section 31 incorporated by the amending Act was to be deemed to have been in operation at all material times in supersession of the previous rule declared by this Court. It was held further that this would be the position eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d adopt in a situation like this, but we have no doubt in our mind that the amendment brought about by section 31 of the Act does not make the judgment of the High Court a nullity and the Judge (Revisions) was not free to ignore it for any reason whatsoever." The question is whether this view of the High Court is correct. The answer to the question depends on the answer to the further question whether the proceedings for the assessment of sales tax had become final after the High Court's judgment dated July 24, 1961, or whether, after that judgment, something remained to be done by the Additional Judge (Revisions). Sub-section (6) of section 11 of the Act provides that the High Court, upon hearing the reference, shall decide the questions of law and shall deliver its judgment thereon and shall send its copy to the revising authority and the Commissioner of Sales Tax, "and the revising authority shall thereupon pass such orders as are necessary to dispose of the case in conformity with such judgment". So, while the Additional Judge (Revisions) was in seisin of the case for the limited purpose for passing such orders as were necessary to dispose it of in conformity with the judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion of law had arisen, is also untenable because that order (dated December 28, 1968) was in favour of the department. In fact, any suggestion or observation of the High Court for seeking any other mode of redress is beside the point for the State felt aggrieved against the impugned judgment of the High Court dated February 11, 1970, and has come up in appeal against it. And now that this Court is in seisin of the case, it would be a work of supererogation to require the parties, or any of them, to go back to the Additional Judge (Revisions) or the High Court for an order. It has next been argued that the amendment made in the Act by insertion of section 31 cannot possibly be implemented as no machinery has been provided to give effect to it and that it should therefore have been ignored altogether. This argument has been made with reference to this Court's decision in Modi Sugar Mills' case [1961] 12 S.T.C. 182 (S.C.); [1961] 2 S.C.R. 189., but it is futile because no question regarding any such machinery could possibly be said to arise for the purpose of giving effect to section 31 of the Act in the facts and circumstances of this case. So when section 31 of the Act is cle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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