Prospective sales tax notification could not retrospectively enhance liability on prior-year turnover.

A notification under section 3-A of the U.P. Sales Tax Act was treated as prospective and confined to sales made after it came into force. The text and stock-declaration requirement showed that the enhanced single-point rate applied only to goods in circulation after the notification, not to sales already completed in the preceding year. The scheme of sections 3 and 7 indicated that liability on the previous year's turnover had already accrued at the then prevailing rate, so a later notification could not retrospectively increase that burden. Section 7-B(2), introduced later, was inapplicable because it governed rate variations occurring during the assessment year after its commencement.

---

---

Issues: Whether the enhanced rate notified under section 3-A of the U.P. Sales Tax Act applied to sales of non-edible oils comprised in the assessee's previous year turnover for the assessment year 1948-49.

Analysis: Section 3-A empowered the Provincial Government to declare prospectively that specified goods would be taxed only at a single point in the series of sales and to prescribe a higher rate for sales falling within that regime. The notification dated 8 June 1948, read with its requirement to furnish stock details as on 8 June 1948, showed that it was directed to sales effected after the notification came into force and not to sales already completed in the previous year. The scheme of sections 3 and 7 also indicated that the liability on the previous year's turnover had already arisen at the commencement of the assessment year on the then prevailing rate, and a later notification could not retrospectively enhance that liability. Section 7-B(2), introduced later, did not assist the Department because its language applied only where the rate was varied during the course of an assessment year after that provision came into force.

Conclusion: The notification of 8 June 1948 did not apply to the assessee's previous year turnover, and the assessee was liable only at the flat rate of 3 pies per rupee.

---