Khanna, J. - (1.) This appeal on certificate is against the judgment of Allahabad High Court whereby the High Court accepted petition under Article 226 of the Constitution of India filed by the respondent and quashed the recovery proceedings initiated by the appellant.
(2.) The respondent-firm was assessed to sales tax under the U. P. Sales Tax Act, 1948 (hereinafter referred to as the Act) for the assessment year 1958-59. The respondent went up in appeal and the tax demand was reduced in appeal. On revision filed by the respondent the total demand of sales tax was further reduced. The respondent made various payments towards the amount of tax found due from him. The sales tax authorities initiated proceedings for recovering the balance of the tax and realising interest at the rate of 18 per cent from February 1, 1964 on part of the tax demand. These recovery proceedings were challenged by the respondent by means of writ petition on the ground that a fresh notice of demand should have been issued to him in respect of the amount as reduced in appeal and revision. Unless that was done, the respondent could not be treated as a defaulter. The liability for payment of interest of the respondent was also questioned. The High Court accepted the first contention and quashed the recovery proceedings.
(3.) We have heard Mr. Manchanda on behalf of the appellant. No one appeared on behalf of the respondent. Mr. Ramamurthi, however, argued the case amicus curiae. After giving the matter our consideration, we are of the opinion that the judgment under appeal cannot be sustained.;