HARI SWARUP, J. - (1.) THESE writ petitions raise common questions of law and are based on similar facts. We accordingly decide them by a common judgment.
(2.) THE petitioners were dealers in country liquor. On their turnover for the assessment year 1969-70, the Sales Tax Officer made assessments and demanded the tax. The assessment was challenged through writ petitions filed by the petitioners. This court, while admitting the writ petitions, issued interim orders restraining the respondents from recovering the sales tax assessed on the petitioners. Ultimately the petitions were dismissed and the taxation was held valid. After the petitions were dismissed, the authorities proceeded to recover from the petitioners the tax as well as the interest payable thereon by virtue of section 8(1-A) of the U.P. Sales Tax Act (hereinafter referred to as the Act). Present petitions have been filed challenging the recovery from the petitioners of the amount of interest which became due for the period during which the recovery of sales tax had remained stayed under the orders of the court mentioned above. A Division Bench of this court, in view of certain observations appearing in some decisions of this court, referred the cases for decision by a larger Bench and that is how the writ petitions have come up before us. During the pendency of the present writ petitions, however, the question which arises in the present cases was considered and decided by the Supreme Court in the case of Haji Lal Mohammad Biri Works v. State of U.P. ([1973] 32 S.T.C. 496 (S.C.); A.I.R. 1973 S.C. 2226.) Section 8(1) and 8(1-A) of the Act run as under : "8. (1) The tax assessed under this Act shall be paid in such manner and in such instalments, if any, and within such time, not being less than fifteen days from the date of service of the notice of assessment and demand as may be specified in the notice. In default of such payment, the whole of the amount then remaining due shall become recoverable in accordance with sub-section (8)." "8. (1-A) If the tax payable under sub-section (1) remains unpaid for six months after the expiry of the time specified in the notice of assessment and demand or the commencement of the Uttar Pradesh Bikri-Kar (Dwitiya Sanshodhan) Adhiniyam, 1963, whichever is later, then, without prejudice to any other liability or penalty which the defaulter may, in consequence of such non-payment, incur under this Act, simple interest at the rate of eighteen per cent per annum shall run on the amount then remaining due from the date of expiry of the time specified in the said notice, or from the commencement of the said Adhiniyam, as the case may be, and shall be added to the amount of tax and be deemed for all purposes to be part of the tax : Provided that where as a result of appeal, revision or reference, or of any other order of a competent court or authority, the amount of tax is varied, the interest shall be recalculated accordingly : Provided further that the interest on the excess amount of tax payable under an order of enhancement shall run from the date of such order if such excess remains unpaid for six months after the order."
(3.) THE interest is being claimed by the respondents under section 8(1-A) of the Act. The petitioners deny their liability for the period the recovery of tax had remained stayed under orders of this court. The contention is that the effect of the stay order was that during the period the injunction remained in force, the petitioners ceased to be in default with the result that no interest became due under section 8(1-A).;