9911796707
TMI Blog1968 (8) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... es, therefore, initiated proceedings for recovery of arrears of tax. The Collector of Farrukhabad issued on 28th March, 1967, a sale proclamation with respect to certain property belonging to the petitioner. According to the sale proclamation, the arrears outstanding against the petitioner amounted to Rs. 73,000 and odd. According to the petitioner, the claim of the respondents is highly exaggerated. The petitioner has, therefore, filed this petition for having the sale proclamation quashed. Annexure F to the petition is a copy of the sale proclamation. According to the respondents, the petitioner became liable to pay interest on arrears under sub-section (1-A) of section 8 of the U.P. Act. The main contention of Mr. Brij Lal Gupta appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -A of the U.P. Act lays down that single point taxation cannot exceed the rate of ten paise per rupee. Mr. Brij Lal Gupta pointed out that if interest is added to the original tax, the total tax may exceed the rate of ten paise per rupee, as laid down in sub-section (2) of section 3-A of the U.P. Act. There is apparently a conflict between sub-section (2) of section 3-A and sub-section (1-A) of section 8 of the U.P. Act. But we must bear in mind that both these provisions form parts of the same statute. Courts must make reasonable endeavour to reconcile the two provisions of the statute. To that extent, the provision of sub-section (2) of section 3-A must be understood as subject to the special provision of sub-section (1-A) of section 8 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The explanation offered by the respondents is that no such notice was necessary, because notice with respect to the tax assessed under section 7 had already been issued; and no extra notice is needed with respect to the interest which has accrued under sub-section (1-A) of section 8. We note that according to sub-section (1-A) of section 8, the interest so added is to be deemed for all purposes to be part of the tax. This language makes it clear that the interest is to be treated as part of the tax. So, all the incidents attaching to tax have to be taken into consideration with respect to the interest which so accrued. The opening words of sub-section (1) of section 8 are "the tax assessed under this Act..." The expression makes no ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a notice of demand intimating the amount payable by him. There was a good deal of correspondence between the parties as regards the exact liability of the petitioner. In September, 1966, the State Government passed an order permitting the petitioner to pay his dues in instalments. In pursuance of that decision, the respondents wrote a letter (annexure D) to the petitioner in September, 1966. In that letter the petitioner was informed that the total liability of the petitioner amounted Rs. 52,000 and odd. This amount consisted of Rs. 39,000 and odd as sales tax assessed under section 7 of the U.P. Act and a sum of Rs. 12,000 and odd on account of interest. A table (annexure D1) was attached to the letter (annexure D). We note that although ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r this Act, assess, collect and enforce payment of any tax, including any penalty, payable by a dealer under this Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and compounding of offences, shall apply accordingly........" The question now arises whether sub-section (3) of section 9 of the Central Act enables the State authorities to press into service sub-section (1-A) of section 8 of the U.P. Act for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to penalties are applicable for the recovery of tax due under the Central Act. In the present case we are not concerned with the recovery of any penalty. The question before this Court is whether interest is recoverable under the Central Act. It may be that interest charged under sub-section (1-A) of section 8 of the U.P. Act is in the nature of penalty. But it has been made clear in the sub-section that the interest so charged is to be deemed for all purposes to be part of the tax. By virtue of this provision, interest assumes the character of tax for all purposes. The present case is, therefore, distinguishable from Adinarayana Setty's case(2). The material words in sub-section (3) of section 9 of the Central Act are: "The authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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