LAKSHMIRATAN COTTON MILLS CO LTD Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution prays that the order dated 13th November, 1964, passed by the Additional District Magistrate, Kanpur, be quashed and the respondents be commanded not to enforce it.

(2.) THE petitioner is a limited company. It carries on the business of manufacture and sale of cotton yarn and cloth. For the year 1955-56 the petitioner deposited a sum of Rs. 4,41,234 in advance by way of sales tax along with the return filed by it in view of rule 41(2) of the rules framed under the U.P. Sales Tax Act, 1948. Ultimately on 21st May, 1958, the Sales Tax Officer passed an assessment order for this year assessing the petitioner to sales tax of Rs. 4,19,322-2-3. THE petitioner was not satisfied with the assessment order. It went up in appeal. On 17th July, 1961, the appeal was allowed, the assessment order was set aside and the matter was sent back to the Assessment Officer for proceeding afresh. THE petitioner was not satisfied with the appellate order and it filed a revision against it. By an order dated 15th September, 1964, passed by the Judge (Revisions) Sales Tax the appellate order was set aside and the matter was remanded back to the Judge (Appeals) for rehearing. THE result of this order was that the assessment order which was set aside in appeal was again revived.

(3.) ON 7th of November, 1964, it was the recipient of a bolt from the blue. ON this day an order dated 6th November, 1964, passed by the Collector was conveyed to the petitioner-company. This order stated that the instalment concessions at the rate of Rs. 17,000 are vacated. The petitioner-company was asked to pay Rs. 2,71,149.90 nP. as sales tax dues and Rs. 47,722.50 nP. as interest thereon at the rate of 18% at once to avoid coercive processes. As in paragraph 32 of the petition the petitioner has reserved the right to take appropriate remedy in regard to the imposition of interest of Rs. 47,722.50 nP., nothing further need be paid about it. The petitioner approached the Collector and reminded him of the solemn agreement entered into by him with the petitioner-company, but the Collector did not agree to adhere to the agreement. By the communication dated 13th November, 1964, the petitioner was informed that "in supersession of all previous orders on the subject the following plan of payment is proposed to be enforced with immediate effect : 1. The company shall pay a sum of Rs. 1.00 lac by 30th November, 1964. For the remaining four months up to March, 1965, the company shall pay at Rs. 50,000 per month. 2. In case of default of payment in any month the company shall render itself liable for recovery of entire dues in lump sum by coercive processes.