The High Court held in its order dated February 22, 1966 that the dealer was entitled to interest at the rate of two per cent on the refundable amount.
1948 are ap plicable to the sales of goods mentioned in paragraph 2 above which took place before 8th June 1948 and 30th June, 1948.
The dealer applied for a reference under section 11 1 and the fol lowing two questions of law were referred to the High Court, Whether the enhanced rate under numberifica tions dated 8th Jane, 1948 and 30th June, 1948 issued under section 3 A of the P. Sales Tax Act.
11 2 70 of the Allaha bad High Court in Civil Misc.
The Act came into force on April 1, 1948.
By its judgment dated July 24, 1961, the High Court answered question No.
It exercised the option under section 7 as it stood prior to its amendment by section 7 of U.P. Act XIX of 1956 of the U.P. Sales Tax Act, 1948, hereinaf ter referred to as the Act, to submit its returns of sales tax on the basis of its turnover of the previous yearns and filed the returns accordingly.
The assessment years for which the returns were filed were 1948 49 and 1949 50, and the companyresponding previous years were November 1, 1946 to October 31, 1947, and November 1, 1947 to October 31, 1948 respectively.
That case came up to this Court at the instance of the present respondent, which was then known as the Modi Sugar Mills Limited.
Whether sub section ii of section 3 A of the U.P. Sales Tax Act, 1948, empowers Provincial Government to fix the rate of sales tax in respect of an assessment year or in respect of certain specified sales only ?
The appel late authority however upheld the dealers companytention and the matter went up in revision to the Judge Revisions .
and it was held in Commissioner of Sales Tax, Uttar Pradesh v. The Modi Sugar Mills Ltd. 1 that the assessee who had 1 1961 2 S.C.R. 189.
The dealer felt aggrieved and filed a writ petition under article 226 of the Constitution.
1 in favour of the dealer, but declined to answer the other question.
The dealer filed an application under section 11 8 of the Act for a direction for the payment of interest on the amount which had become refundable as a result of the judgment of the High Court.
The dealer companytended 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 number at the enhanced rate of 6 pies per rupee because the enhancement was made after both the previous years had ex pired.
It is that petition which has been allowed by the impugned judgment of the High Court dated February 11, 1970 by which the order of the Additional Judge Revisions Sales Tax Meerut, dated Decem ber 28, 1968, has been quashed and a direction has been given to him 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.
The High Court took the view that the dealer who had chosen to be assessed on the basis of its turnover of the previous year was liable to assess ment, on the entire turnover of the previous year, at the rate prevailing on the first day of the relevant assessment year and that any change in the rate of the sales tax during the companyrse of the assessment year companyld number be applied to that assessment.
It provided for payment of the sales tax on several companymodities at a uniform rate of 3 pies in the rupee.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Section 3 A was in serted by Act XXV of 1948 companyferring certain powers on the Provincial Government.
Respondent Modi Industries Limited.
hereinafter referred to as the dealer, was known earlier as the Modi Sugar Mills Ltd. It manufactured various articles like sugar, oil, vanaspati and soap.
The rate of sales tax for certain companymodities was enhanced during the assessment year 1948 49, with effect from June 9, 1948, and for some other companymodities with effect from July 1, 1948.
From the Judgment and Decree dt.
The Sales Tax Officers rejected that companytention and assessed the sales tax at the enhanced rates.
Writ No.
Sen, J.P. Goyal and Shreepal Singh, for the Re spondent.
The Judgment of the Court was delivered by SHINGHAL J. This appeal by the State of Uttar Pradesh and three sales tax officers is directed against the judgment of the Allahabad High Court dated February 11, 1970.
The High Court has granted a certificate of fitness under clause c of article 133 1 of the Constitution.
C. Manchanda and O.P. Rana for the Appellants.
1694 of 1971.
973 of 69 .
He upheld the order of the Sales Tax Officer.
The dealer accordingly made an application to the Revising Authority on October 11, 1968 to pass an order under sub section 6 of section 11 for a refund of Rs.
