Alternative remedy and electrical classification: K.W.H. meters fell within the concessional distribution entry, quashing reassessment notices.

A writ petition challenging sales tax reassessment notices was not barred by the alternative-remedy rule where the dispute raised the correctness of the legal basis for issuing the notices and required judicial clarification. On classification, K.W.H. meters were treated as electrical equipment required for distribution of electrical energy because they measure the quantity supplied to consumers. They therefore fell within item No. 7-A of the 1 October 1965 notification, not the general entry for electrical goods. The reassessment and reopening notices issued under the U.P. Sales Tax Act on the contrary classification lacked legal justification and were quashed.

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Issues: (i) whether the writ petitions should be declined on the ground that the petitioner had an alternative remedy under the U.P. Sales Tax Act; (ii) whether K.W.H. meters manufactured and sold by the petitioner fell under item No. 7-A of the notification dated 1 October 1965, so that the assessments were correct and the notices issued under sections 21 and 22 of the U.P. Sales Tax Act were without jurisdiction.

Issue (i): whether the writ petitions should be declined on the ground that the petitioner had an alternative remedy under the U.P. Sales Tax Act.

Analysis: The notices were issued on the strength of earlier observations of the Court, and the assessing authority had already shown a settled view in subsequent proceedings. In those circumstances, it would not be proper to relegate the petitioner to the statutory proceedings, because the controversy involved the correctness of the legal basis on which the notices had been issued and required clarification by the Court.

Conclusion: The objection based on alternative remedy was rejected, and the writ petitions were maintainable.

Issue (ii): whether K.W.H. meters manufactured and sold by the petitioner fell under item No. 7-A of the notification dated 1 October 1965, so that the assessments were correct and the notices issued under sections 21 and 22 of the U.P. Sales Tax Act were without jurisdiction.

Analysis: Item No. 7 covered electrical goods other than equipment, plants and accessories required for generation, distribution and transmission of electrical energy, while item No. 7-A covered electrical equipment, plants and accessories as required for those purposes. K.W.H. meters are equipment used by the distributor for measuring the quantity of electrical energy supplied to consumers and are necessary for distribution of electrical energy. The earlier decisions relied upon by the revenue dealt with ammeters, voltameters and galvanometers, which measure current or voltage, and did not lay down that K.W.H. meters are outside item No. 7-A.

Conclusion: K.W.H. meters were held to fall under item No. 7-A, and the impugned notices under sections 21 and 22 were without legal justification.

Final Conclusion: The petitioners succeeded, and the reassessment and reopening notices founded on the contrary classification were quashed.

Ratio Decidendi: Equipment used by a distributor for measuring the quantity of electrical energy supplied to consumers is equipment required for distribution of electrical energy and falls within the concessional entry framed for such equipment.

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