No estoppel against a tax statute, but special equities justified relief from collection of the disputed demand.

Sales of weights and measures were held outside the notification covering only goods within "mill-stores and hardware"; the earlier view that such items were not included was accepted. Representations or clarifications by State authorities could not create estoppel against a taxing statute, so the statutory liability remained unaffected on that point. Even so, the Court declined to enforce collection in the special facts, noting the assessee's reliance on the official view, the relatively small liability for the relevant years, and the equities of the case, and directed refund if tax had already been collected.

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Issues: Whether sales of weights and measures fell within the notification issued under section 3-A of the Uttar Pradesh Sales Tax Act as covered by "mill-stores and hardware", and whether the tax demand could nevertheless be enforced in view of the representations made by the authorities and the special facts of the case.

Analysis: The notification under section 3-A was held to cover only those goods that fell within the notified entry, and the earlier Full Bench view that weights and measures were not included in "mill-stores and hardware" was accepted. The representations or clarifications issued by the State Government or its officers could not operate as an estoppel against the statute, because there can be no estoppel against a taxing enactment. At the same time, the Court noted that the assessee had been influenced by the official view, that the liability for the three years was comparatively small, and that the matter had special equities warranting relief.

Conclusion: The statutory position was against the assessee on the scope of the notification, and estoppel was unavailable, but the Court declined to enforce the tax demand in the special facts and circumstances and directed refund if the amount had been collected.

Final Conclusion: The appeals succeeded to the extent that the assessee was granted relief from collection of the disputed tax for the relevant years, despite the legal holding on the scope of the notification.

Ratio Decidendi: There can be no estoppel against a statute, but in exceptional factual circumstances a court may decline to enforce a tax demand already found legally payable.

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