GULATI, J. - (1.) THIS is a petition under article 226 of the Constitution.
(2.) BY this petition the petitioners have challenged the proceedings for the recovery of penal interest on arrears of sales tax due from them. In respect of the assessment year 1955-56, the petitioners were assessed to sales tax under the U.P. Sales Tax Act in the sum of Rs. 39,753.42. As the petitioners had already deposited a sum of Rs. 30,491.05 along with the quarterly return a notice of demand for the balance of Rs. 9,262.37 was served upon them. The petitioners filed an appeal against the assessment order and also approached the Commissioner of Sales Tax for the stay of the tax demanded from them.
(3.) IT appears from the counter-affidavit of Sri H. D. Gupta that on 15th September, 1960, the Commissioner passed an order staying the realisation of tax till the decision of the petitioners' appeal. Later, on 29th November, 1960, another order was passed by the Commissioner granting stay "till further order". The petitioners' appeal was dismissed on 25th July, 1962. The petitioners then filed a revision petition which was also disposed of on 17th October, 1964. However, no order vacating the stay order was passed by the Commissioner until August, 1967. On 21st January, 1969, the Sales Tax Officer issued a recovery certificate for the realisation of the arrears of tax amounting to Rs. 6,262.36. In the aforesaid recovery certificate it was further mentioned that in case the aforesaid amount was not fully recovery by 1st August, 1964, interest at the rate of 18 per cent. per annum on the amount then remaining due may be charged with effect from 1st February, 1964. In pursuance of this certificate, the Collector, Kanpur, the second respondent, realised from the petitioners the arrears of tax amounting to Rs. 6,262.36 on 30th August, 1969. He also realised penal interest amounting to Rs. 2,300 from the two partners of the petitioner-firm. A further sum of Rs. 720 was also realised towards penal interest by way of adjustment of refund due to the petitioners for the assessment years 1954-55 and 1955-56. A further sum of Rs. 3,993.31 is still being claimed from the petitioners on account of penal interest and the second respondent has issued a warrant of arrest against Ram Chandra, a partner of the petitioner-firm.;