Case Law Details
State Of Himachal Pradesh Vs A.J. Infrastructures (Supreme Court of India)
Held that section 16-B of the Himachal Pradesh General Sales Tax Act, 1968 (HPGST) would be attracted only after determination of the liability.
Facts- The legal issues arising for decision on these appeals are whether, in view of dismissal of the special leave petition qua PNB, the judgment and order outlawing section 16-B of the HPGST Act can at all be examined; whether section 16-B of the HPGST Act should have been outlawed by the High Court on the ground that it is ultra vires the Constitution or the Banking Companies Act; whether the High Court was justified in returning the findings that the State’s claim of first charge on the subject properties is not substantiated.
Conclusion- From the excerpt of the impugned judgment and order of the High Court dated 2nd January, 2008 underlined above, it is clear that proceedings were not initiated upon notice to the defaulters and the sum they owed to the department had not been finally determined in accordance with law. In view thereof, question of the State resorting to the provisions contained in Chapter VI of the HPLR Act for recovering the dues, if at all, as arrears of land revenue did not arise.
Held that section 16-B would be attracted only after determination of the liability and upon any sum becoming due and payable; and that, it is only thereafter that the charge, if any, would operate.
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