- (1.) The question as to whether due to not filing of sale tax, within the period fixed, the interest imposed by the Trade Tax Authorities under Section 81 of the U.P. Sales Tax Act, now known as Trade Tax Act, can be assailed in a regular suit filed by the assessee before the Civil Court.
(2.) It is evident that against the imposition of interest respondent preferred an appeal under Section 9 of the Act, before the appellate authority. That appeal was dismissed. The case of the respondent is that the Secretary, Financial Institution, addressed a letter, to the Commissioner, Sales Tax, Lucknow, not to realise the interest for the assessment year 1975-76 to 1978-79, amounting to Rs. 70 thousand, under certain conditions.
(3.) This letter cannot be said to be issued by the State Government under Article 162 of the Constitution of India, which is in the nature of communication of the Secretary, to the Commissioner, Sales Tax, Lucknow, which has not been issued in the name of the Governor or authenticated by the Secretary. The appellate authority considered this aspect of the matter and gave a finding that this letter cannot be relied upon in view of the expressed provisions of law in U.P. Sales Tax Act. When the suit was filed, a preliminary issue was framed by the Civil Court, as to whether the suit was barred by Section 17 of the U.P. Sales Tax Act, or not. The Trial Court took a view that against the assessment orders, there existed a bar under Section 17 of the Act, but as the suit was filed against the imposition of interest/penalty, hence the suit was not barred. It appears that the Court below has totally ignored the provisions of Section 17 of the Act, as well as the law laid down by this Court and Hon'ble Supreme Court, on the said subject. Provisions of Section 17 of the U.P. Sales Tax Act, reads as under : 17. Bar to certain proceedings- No assessment made and no order passed under this Act or the Rules made thereunder by any authority shall be called in question in any Court, and save as is provided in this Act, no appeal or application for revision or review shall lie against any such assessment or order.;