1971 (8) TMI 193 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity and validation of Notification No. S.T. 2934/X-902(7)-56 dated 1st August, 1958 under U.P. Sales Tax Act.
2. Proper rate of tax on yarn for the period 1st August, 1958 to 31st March, 1959.

Analysis:

The judgment of the court addressed two main issues. Firstly, it discussed the validity and validation of Notification No. S.T. 2934/X-902(7)-56 dated 1st August, 1958 under the U.P. Sales Tax Act. The court noted that a clerical mistake was made in referencing Act No. 15 of 1964 instead of Act No. 14 of 1964. The notification in question was initially deemed invalid due to a previous court decision. However, Act No. 14 of 1964 validated the notification, even though it had been superseded by a later notification. The court emphasized that the legislative intention was to validate all notifications issued under the relevant section, regardless of their current status. Therefore, the court concluded that the notification was initially invalid but had been validated by Act No. 14 of 1964.

Secondly, the court deliberated on determining the proper rate of tax on yarn for the period 1st August, 1958 to 31st March, 1959. The court clarified that the dispute only pertained to this specific period within the assessment year 1958-59. As per the validated notification of 1st August, 1958, the rate of tax was fixed at 2 per cent for this period. Consequently, the court answered the second question by confirming that the proper rate of tax on yarn for the mentioned period would be 2 per cent. Additionally, the court awarded costs to the Commissioner of Sales Tax amounting to Rs. 100.

In conclusion, the court's judgment resolved the issues by affirming the validation of the notification under the U.P. Sales Tax Act and determining the correct rate of tax on yarn for the specified period within the assessment year 1958-59.