Invalid sales tax deposit demand fails where the charging provision had already been declared ultra vires.

Section 20-A(3) of the Bihar Sales Tax Act, read with sub-sections (4) and (5), had already been declared ultra vires, so the Superintendent of Commercial Taxes lacked authority to compel a dealer to deposit amounts said to have been collected as sales tax on mica sales. The demand depended entirely on a provision that was invalid, and the direction to deposit could not stand. The issue was answered in favour of the dealer.

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Issues: Whether the dealer could be directed under section 20-A of the Bihar Sales Tax Act, 1959 to deposit in the Government treasury the amount collected as sales tax on sales of mica, in view of the validity of section 20-A(3).

Analysis: Section 20-A(3), together with sub-sections (4) and (5), had already been held to be ultra vires the State Legislature. Once those provisions were invalid, the Superintendent of Commercial Taxes had no authority to require the dealer to deposit the amount alleged to have been collected as tax. The reference therefore had to be answered by applying the declared invalidity of the statutory provision on which the demand rested.

Conclusion: The direction to deposit the amount could not stand and the issue was answered in favour of the dealer.

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