Judgment

RANGANATH MISRA

( 1 ) THESE are three appeals by special leave petitions relating to the periods 1967-68, 1968-69 and 1969-70 for purposes of assessment of sales tax under the Utter Pradesh Sales Tax Act. The appellant is a dealer in weights and measures. At the relevant time the Statute authorised the State Government to make a deviation from the general Scheme of multi-point taxation by notifying that sales of such items as were included in the notification would be liable to single-point tax. The State Government, in exercise of such power under S. 3-A of the Act by notification No. ST-4124-X-950 (12), 1967 dated 31/07/1967 provided that sale of "mill stores and hardware" would be exigible to single-point tax and as against the general rate of 3 Per Cent the same would be liable at 6 Per Cent. Several representations were made by dealers in weights and measures to their association for clarification from the authorities as to whether weights and measures were included in "mill stores and hardware". We have been shown several notifications, letters and clarificatory orders issued by authorities under the Act and some of them even quoted the authority of the State Government as the originating point of the view that weights and measures were included within the notification being covered by Item 3. The question came up for consideration before a Full Bench of the Allahabad High Court as to whether weights and measures were so included with the item "mill stores and hardware" and a Full Bench of the High Court in Commr. , Sales Tax, U. P. v. Ram Niwas Puskar Dutt, Faizabad, 28 STC 736 : (1972 Tax LR 1889) (All) came to hold to the contrary, namely, that that entry did not cover weights and measures. Apparently, the correspondence, the orders and directions of the officers etc. were not placed before the Court and the Court had, therefore, no occasion to consider the effect of such representations as contained therein. At the relevant time when the Full Bench decision came, the appellant had appeals for these three years pending before the Appellate Authority raising certain other issues. The assessing officer had accepted the stand of the appellant and given him the benefit and assessed the transactions as covered by the notification under S. 3-A. The Appellate Authority put to the assessee to notice and on the basis of the decision of the High Court held that the sales were not covered by the notifications under Section 3-A and were liable to tax at the general rate. The present appeals question such action of the Appellate Authority as upheld by the other authorities in the hierarchy.

( 2 ) HAVING heard learned counsel for the appellant, we are satisfied that the view taken by the Full Bench decision is correct. We are equally satisfied that the representations either of the State Government or of the authorities under the Statute would not give rise to a situation of estoppel against the Statute. The law is clear and there are several decisions of this Court which make the position abundantly certain that the estoppel is not available to be pleaded against an Act.

( 3 ) AWARE of these difficulties, learned counsel instead of trying to contend that the decision of the Full Bench is wrong has confined his submission to a short aspect, namely that the assessee in the instant case is a small dealer who had no occasion to enquire and examine as to whether the representations of the authorities were correct. He could have passed on the liability of tax if he knew that the multi-point basis was the right one to be applied. But he felt misled by the orders of the authorities, and therefore, he could not pass on the liability to the purchasing dealers or the consumers. We find that the ultimate tax liability involved in these three years is less than Rs. 30,000. 00. Learned counsel has relied upon two decisions of this Court where almost in similar situation this Court has taken the view that notwithstanding the legal positio