Quashed tax concessions could not justify continued reduced collection; dealers had to follow the statutory rate despite pending appeals.

After concessional sales tax notifications were quashed, dealers were bound to apply the rate in the statutory Schedule, and could not continue collecting tax at the reduced rate merely because appeals were pending. The plea that the appellant was unaware of the High Court decision was rejected because ignorance of law is no excuse. The Court distinguished situations where a valid notification legally prevented collection at a different rate. The assessment and demand therefore stood, and the appellant remained liable to collect and pay tax at the applicable 6 per cent rate.

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Issues: Whether the appellant was liable to collect and pay sales tax at the rate prevailing in law after the notifications granting concessional rates had been quashed, notwithstanding the pendency of appeals and the appellant's claimed ignorance of the High Court decision.

Analysis: The notifications issued under section 8A of the Karnataka Sales Tax Act, 1957, had already been struck down, and once that happened the dealers were bound to follow the rate provided in the Schedule. The pendency of appeals did not permit collection at a concessional rate contrary to the law in force. The plea of ignorance of the judgment was rejected, since ignorance of law is no excuse, and the Court distinguished decisions where parties were prevented by law from collecting tax at a different rate during the currency of valid notifications.

Conclusion: The appellant remained bound to collect and pay tax at 6 per cent, and the challenge to the assessment and demand failed.

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