Retrospective validation of tax collection upheld, with writ relief against cheque encashment refused after suppression was admitted.

The jurisdictional objection to collection of sales tax by obtaining cheques without prior assessment was rejected because a retrospective amendment to the Act validated the relevant delegation. Section 38(4) was treated as deeming the notifications to have always formed part of the Act and as protecting assessments, demands and connected action from invalidity. The petitioners' admission of suppression of turnover and issuance of cheques after inspection also meant they could raise objections before the assessment authorities instead of seeking to prevent encashment by writ. The collection action was therefore not treated as without jurisdiction, and the requested relief was declined.

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Issues: Whether the Assistant Commissioner had jurisdiction to collect the alleged sales tax by obtaining cheques without prior assessment proceedings, and whether the petitioners were entitled to prevent encashment of the cheques.

Analysis: The jurisdictional objection was rejected in view of the retrospective amendment to the Act. The earlier view striking down the relevant delegation was treated as not governing the case because sub-section (4) of section 38, introduced by the amendment, deemed the relevant notifications to have always been incorporated and protected assessments, demands and connected action from invalidity. The petitioners had also admitted suppression of turnover in the returns and had issued the cheques after the inspection, leaving them free to raise objections before the assessment authorities rather than seek a writ to stop encashment.

Conclusion: The collection action was held not to be without jurisdiction, and the petitioners were not entitled to the relief sought.

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