Predeposit under sales tax law: admitted tax is based on declared turnover, and vires challenges cannot reduce it.

Under the predeposit requirement in the first proviso to section 9(1) of the U.P. Sales Tax Act, "admitted tax" means the tax payable on the dealer's declared net turnover at the statutory rate and under the notification then in force. A dealer cannot reduce that admitted liability before the appellate authority by challenging the validity or vires of the notification, because such authorities have no jurisdiction to decide that question. The appeal could not be entertained without proof of payment of the admitted tax, and the plea that the importer was not a successive dealer was unavailable for avoiding the statutory deposit.

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Issues: Whether the "admitted tax" for the purpose of the first proviso to section 9(1) of the U.P. Sales Tax Act means the tax computed on the net turnover declared by the dealer at the rate prescribed under the Act and the notification issued thereunder, and whether a plea challenging the validity of the notification could be relied upon to reduce that admitted tax for entertaining the appeal.

Analysis: The proviso to section 9(1) bars entertainment of an appeal unless it is accompanied by satisfactory proof of payment of the amount of tax admitted by the appellant to be due. The expression "admitted tax" was held to mean the tax found due on the net turnover declared by the dealer when calculated at the rate prescribed under the Act and the notification in force. A dealer cannot enlarge or alter the admitted tax by raising, before the appellate authority, a challenge to the vires of the notification, because the statutory authorities under the Act have no jurisdiction to adjudicate upon the validity of such a notification. The plea that the importer was not a "successive dealer" and that the notification was invalid was therefore not available for the purpose of avoiding the statutory deposit.

Conclusion: The admitted tax is the tax computed on the declared net turnover at the prescribed rate, and the appeal could not be entertained without proof of payment of that amount. The answer is against the dealer and in favour of the Revenue.

Ratio Decidendi: For the purpose of an appeal-conditioned predeposit under the sales tax law, "admitted tax" is the tax admitted on the declared turnover at the applicable statutory rate, and a challenge to the vires of the levy or notification cannot be used before the appellate authority to reduce that admitted liability.

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