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march 1961

Supreme Court of India · 1961-03-14

M/s. NAND LAL RAJ KISHAN vs COMMISSIONER OF SALES TAX, DELHI AND ANOTHER

Citation / case number
SC 1958/77
Court
Supreme Court of India
Petitioner
M/s. NAND LAL RAJ KISHAN
Respondent
COMMISSIONER OF SALES TAX, DELHI AND ANOTHER
Author
S.K. DASL. KAPUR,M. HIDAYATULLAHC. SHAH,T.L. VENKATARAMA AYYAR
Bench
S.K. DAS,J.L. KAPUR,M. HIDAYATULLAH,J.C. SHAH,T.L. VENKATARAMA AYYAR

Judgment text excerpt

The Supreme Court upheld the validity of Section 8A of the Bengal Finance (Sales Tax) (Delhi Amendment) Act, 1956, which allows the Commissioner of Sales Tax to demand security from dealers for tax payment. The Court ruled that the Commissioner's power is not unlimited, as it must be necessary for the proper realization of tax, and the amount demanded is subject to revision by the Chief Commissioner. The Court found no violation of natural justice as the petitioners were given an opportunity to present their defense, thus affirming the legality of the security demand process.

M/s. NAND LAL RAJ KISHAN vs COMMISSIONER OF SALES TAX, DELHI AND ANOTHER · Niyam