Invalid sales tax rule cannot support assessment; proceedings founded on a struck-down provision are without jurisdiction.

An assessment made under a sales tax rule already declared ultra vires was treated as a nullity because a provision that has been struck down cannot continue to authorise levy or collection of tax. The administration was bound by the High Court's declaration of invalidity and could not proceed on the basis of a rule that had ceased to have legal force, creating a jurisdictional defect in the assessment and related proceedings. The challenge was also regarded as requiring full adjudication rather than summary rejection at the threshold, and the writ proceedings were restored for substantive hearing.

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Issues: Whether an assessment made under a sales tax rule already declared ultra vires and illegal by the High Court was a nullity and whether the writ petition should have been admitted by issuing a rule nisi.

Analysis: The assessment was made under rule 2(2) of the Bengal Sales Tax Rules, 1941, after that rule had already been struck down as illegal and ultra vires. Once the rule had been declared invalid, it could no longer operate as law for levy or collection of tax. An administrative authority was bound to follow the law declared by the High Court and could not deliberately proceed on the basis of a provision that had ceased to have legal force. In such circumstances, the assessment and the subsequent proceedings based on it involved a jurisdictional defect. The Court also treated the challenge as one that required full adjudication after issuance of notice, rather than summary rejection at the threshold.

Conclusion: The assessment was treated as a nullity, and the refusal to issue a rule nisi was set aside in favour of the appellants.

Final Conclusion: The writ proceedings were restored for substantive consideration, with interim protection against recovery if tax had not yet been realised.

Ratio Decidendi: An administrative authority cannot assess or recover tax under a provision already declared invalid by the High Court, and any proceeding founded on such a provision is without jurisdiction.

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