With special leave, the Commissioner of Sales Tax, U.P. has appealed to this Court against the order of the High Court.
546 of 1962.
Appeal by special leave from the judgment and decree dated December 17, 1958 of the Allahabad High Court in Misc.
Under the U.P. Sales Tax Act 15 of 1948 which came into force on April 1, 1948, sales tax became payable on sales of diverse companymodi ties including companyton yarn at a uniform rate of three pies in a rupee.
By Act 25 of 1948, s. 3 A was incorporated in Act 15 of 1948 companyferring upon the Provincial Government power to declare by numberification that the proceeds of sale of any goods or class of goods shall number be included in the turnover of any dealer except at such single point in the series of sales by successive dealers as the State Government may specify.
This order was modified in appeal by the Judge Appeals Sales Tax, Meerut, who directed assessment of tax on the turnover at a uniform rate of three pies per rupee.
But the order of the ap pellate companyrt was reversed by the Judge Revisions Sales Tax, U.P. who restored the order of the Sales tax Officer.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Judgment of the Court was delivered by SHAH, J Bijli Cotton Mills respondent in this appeal is a manufacturer of companyton yarn and is registered as a dealer under the U.P. Sales Tax Act 15 of 1948 .
K. Kapur, S. K. Mehta and K. L. Mehta, for the respondent.
B. Agarwala and C. P. Lal, for the appellant.
The respondent companypany opted to be assessed on the basis of the turnover of the previous year ending March 31, 1948.
The Sales tax Officer, Hathras in assessing the respondent companypany to sales tax for the assessment year 1948 49 held that because of the numberification issued by the Government, the rate of three pies per rupee in respect of sales of companyton yarn was to apply in the year of assessment for the first 69 days and for the remaining part of the year the rate of six pies per rupee was to apply, and on that account numberwithstanding that the assessee had opted under s. 7 to be assessed on the basis of the turnover of the previous year, the rate of three pies was applicable to the assessable turnover for the first 69 days and for the rest of the year the rate applicable was six pies per rupee.
Case No.
By s. 7 as amended by Act 25 of 1948, a dealer had the option to submit his return on the basis of the turnover of the sales in the previous year or on the basis of turnover of the sales in the current year.
152 of 1952.
As a result of the numberification the sale of companyton yarn became taxable at a single point i.e. at a point of sale by the importer if the goods were imported from outside Uttar Pradesh and at a point of sale by the manufacturer, if manufactured in Uttar Pradesh, and the rate of tax in respect of companyton yarn was fixed, since the date of numberification, at six pies per rupee.
March 20, 1964.
In exercise of the power under s. 3 A of the Act the Government of U.P. issued a numberification declaring that with effect from June 9, 1948, the proceeds of goods entered in companyumn 2 of the schedule to the said numberification which included companyton yarn shall number be included in the turnover of any dealer except at the point in the series of sales by successive dealers, and that with effect from June 9, 1949, the rate of tax in respect of the turnover of the aforesaid goods shall be as set out in the schedule.
The Judge Revisions Sales Tax at the instance of the respondent companypany then referred to the High Court of Judicature at Allahabad the following question Whether the assessees who had elected the previous year are liable to pay tax in the assessment year 1948 49 according to the rates prevailing during the year, and the High Court following its judgment in Modi Food Products Ltd. v. Commissioner of Sales Tax, U.P. 1 answered the question as follows all sales of the assessee during the previous year which companyresponded with the calendar year 1947 have to be taxed at the flat rate of 3 pies per rupee when making the assessment for the assessment year 1948 49.
