Mootham, C.J. - (1.) This is a petition under Article 226 of the Constitution. The petitioner is a firm carrying on the wholesale cloth business in the town of Pilkhuwa in the district of Meerut. The respondent is a Sales-tax Officer, Ghaziabad.
(2.) For the purpose of its business the petitioner purchased cloth from dealers and other persons in the Uttar Pradesh and also from dealers outside this State. In the case of cloth acquired from outside the State the usual practice was for the dealers to despatch the cloth to the petitioner by railway. The consignors at the same time despatched to a bank at Pilkhuwa the relative railway receipts drawn in favour of 'self', together with Hundis in respect of the price of the consignment, and upon the petitioner returning the Hundis the bank endorsed the railway receipts in favour of the petitioner who then took delivery of the consignments. In some cases the consignors sent the goods to the petitioner at Pilkhuwa by motor truck, the price of these goods being paid by the petitioner at the time of delivery.
(3.) In respect of the assessment year 1952-53 the respondent Sales-tax Officer determined the turnover of the petitioner at Rs. 4,05,086-14-0 of which Rs 3,81,657-1-6 was the turnover of imported cotton cloth, and he assessed the firm to sales tax in the sum of Rs. 12,306-15-0. In respect of the assessment year 1953-54 the respondent determined the petitioner's net turnover at Rs. 4,08,631-6-9 which included Rs. 3,98,631-6-9 in respect of imported cloth, and he assessed the tax at Rs. 12,613-6-9. The petitioner has appealed from both orders of assessment to the Judge (Appeals) Sales Tax and both appeals are still pending, but it is stated that the respondent is pressing the petitioner for payment of so much of the tax demanded as is still outstanding and has instituted proceedings against the firm under Section 14, U. P. Sales Tax Act.;