RAMASWAMI, C.J. - (1.) IN this case the petitioner has obtained a rule from the High Court asking the respondents to show cause why the order of the Superintendent of Sales Tax, dated the 10th of February, 1955, forfeiting the amount of Rs. 2,11,222-9-6 under the proviso to section 14A of the Bihar Sales Tax Act should not be called up and be quashed by a writ in the nature of certiorari under Article 226 of the Constitution. Cause has been shown by the Advocate-General on behalf of the State of Bihar and the other respondent to whom notice of the rule was ordered to be given.
(2.) THE petitioner, Rai Bahadur Hurdut Roy Moti Lall Jute Mills, was registered as a dealer under the Bihar Sales Tax Act and was carrying on its business at Katihar in the district of Purnea. The main business of the petitioner was the manufacture and sale of gunny bags, hessian and other jute products. Under a notification dated the 1st of April, 1950, made under section 27 of Part IV of the Bihar Finance Act (Act XVII of 1950) the Governor of Bihar fixed the rate of 3 pies in the rupee as tax on the sale and purchase of jute and jute products. During the period 1st of April, 1950, to 31st of March, 1951, the petitioner sold and despatched jute and jute products amounting to Rs. 92,24,386-1-6 to dealers outside the State of Bihar. A sum of Rs. 2,11,222-9-6 was realised by the petitioner as sales tax from such dealers. Section 14A of the Bihar Sales Tax Act was introduced by Bihar Act VI of 1949, which came into force from 1st October, 1948. Section 14A then read as follows :- "14A. Unregistered dealers not to collect tax. - No dealer who is not a registered dealer shall realise any amount by way of tax on sale of goods from purchasers, nor shall any registered dealer make any collection of such tax except in accordance with such restrictions and conditions as may be prescribed". A proviso was added to section 14A by the Bihar Finance Act, 1952 (Bihar Act IV of 1952). The proviso was in the following terms :- "Provided that if any dealer collects any amount by way of tax, in contravention of the provision of this section or the conditions and restrictions prescribed thereunder, the amount so collected shall, without prejudice to any punishment to which the dealer may be liable for an offence under this Act, be forfeited to the State Government and such dealer shall pay such amount into the Government Treasury in accordance with a direction issued to him by the Commissioner or any officer appointed under section 3 to assist him and, in default of such payment, the amount shall be recovered as an arrear of land revenue."
(3.) ON the 30th of March, 1953, the Supreme Court decided that sales tax cannot be levied on goods despatched to other States for consumption in those States. The decision of the Supreme Court was pronounced in the United Motors case ([1953] S.C.R. 1069; 4 S.T.C. 133). The question of assessment of sales tax upon the petitioner for the period from the 1st of April, 1950, to 31st of March, 1951, was taken up by the Superintendent of Sales Tax on the 31st of May, 1953, and it was decided that the petitioner was not liable to pay sales tax on the sales of jute and jute products to dealers outside Bihar. The order of the Superintendent of Sales Tax is annexure A to the application. But on the 17th of June, 1954, the Superintendent of Sales Tax took proceedings against the petitioner under section 14A of the Bihar Sales Tax Act and asked him to show cause why the amount of Rs. 2,11,222 and odd should not be forfeited to the State Government. The petitioner showed cause and on the 10th of February, 1955, the Superintendent of Sales Tax ordered that the petitioner should deposit Rs. 2,11,222 and odd with the Government Treasury within a month of the receipt of the order. The order of the Superintendent of Sales Tax is annexure D to the application. Against this order the petitioner made the present application to the High Court on the 24th of March, 1955. On the next day the High Court issued a rule against the respondents. On the 1st of April, 1955, however, the Bihar Legislature amended section 14A of the Bihar Sales Tax Act so as to make it expressly retrospective. The amendment was made by Bihar Act IV of 1955, which reads as follows :- "Amendment of section 14A of Bihar Act XIX of 1947. - In the proviso to section 14A of the Bihar Sales Tax Act, 1947 (Bihar Act XIX of 1947) (hereinafter referred to in this part as 'the said Act') after the word 'collects', the words 'or has or had collected' shall be inserted and shall be deemed to have always been so inserted." ;