TMI Blog1984 (12) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-C, sub-section (2), of the Uttar Pradesh Sales Tax Act, 1948 (for short "the Act of 1948"), the assessing authority has to satisfy as to what amount of security for proper use of form XXXI is required to be furnished by a dealer and that such power cannot be exercised by the Commissioner. The aforementioned circulars having been issued by the Commissioner fixing the amount of security are said to be invalid for this reason. A perusal of the Act of 1948 shows that section 8-C was substantially amended retrospectively by the U.P. Sales Tax (Amendment) Act, 1984 (U.P. Act No. 22 of 1984), published in the U.P. Gazette dated 1st October, 1984 (hereinafter referred to as the amending Act of 1984). The amended section 8-C(2) empowered the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direction to the assessing authority to demand security of a specified amount. In our view when jurisdiction is vested in the assessing authority to record a satisfaction as to what amount of security is to be furnished by a dealer for proper use of form XXXI under section 8-C(2) and when that provision does not confer concurrent jurisdiction on the Commissioner in this behalf, the latter will have no jurisdiction to determine the amount of security. To support our view-point, we rely on a decision of the Supreme Court in Commissioner of Police v. Gordhandas AIR 1952 SC 16. The facts in the said case were that the respondent wanted to build a cinema house in a part of Greater Bombay. He obtained the necessary permission from the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, 1983, has already been upheld by a Division Bench of this Court in the case of Kulbhushan Chawla v. Commissioner of Sales Tax, U.P. (printed at page 215 infra) 1984 ALJ 125 and that judicial properiety demands that earlier decision of this Court holding the circular dated 11th October, 1983, to be valid, should be followed. We have carefully perused the unamended section 8-C which was interpreted by this Court for deciding the case of Kulbhushan Chawla (printed at page 215 infra) 1984 ALJ 125 and the amended section 8-C. Whereas in the unamended section 8-C no discretion was vested in the assessing authority to fix up the amount of security, such discretion has been clearly vested in the assessing authority by the amending Act of 1984. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law made by the court loses its value and efficacy and such declaration cannot operate as res judicata between the parties after the law itself has been amended." (emphasis* supplied) Relying on the aforesaid authorities, we hold that the rule laid down by this Court in the case of Kulbhushan Chawla (printed infra) 1984 ALJ 125 has lost its value and efficacy after the retrospective legislation came into force. This being so, we are not violating any judicial propriety in not following the decision of this Court. In the light of the aforesaid discussion, we hold that the circulars dated 11th October, 1983, 16th November, 1983, and 11th May, 1984, inasmuch as they are in conflict with the statutory provision conferring the discretion on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner therein to deposit as security a sum of Rs. 420 per form. Since similar situation has arisen again and the petitioner asked for supply of form XXXI, in order to guard against malpractices, the department has issued the impugned circular whereby a sum of Rs. 300 is being demanded from the applicant by way of security before the supply of form. It may be noticed that under rule 85(4) of the U.P. Sales Tax Rules an applicant cannot ask for the supply of such forms as a matter of right, on the other hand, *Here italicised. it is in the discretion of the Sales Tax Officer. The Sales Tax Officer cannot be compelled to issue the forms applied for: see Krishna Coal Concern, Ballia v. Sales Tax Officer, Ballia [1976] 38 STC 257; 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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