Taxability of opium transactions and mandatory statutory interest upheld under the U.P. Trade Tax Act.

Opium grown by cultivators on behalf of the Narcotics Department was held taxable under the U.P. Trade Tax Act, 1948, because the transaction fell within the binding precedent treating such opium dealings as exigible to trade tax; the cultivators' arrangement did not remove it from the taxing provision. Interest on delayed payment under section 8(1) was also treated as mandatory, with the statutory consequence following once tax was payable and no judicial waiver available. The Department's revisions succeeded on taxability, while the revisions seeking waiver of interest failed.

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Issues: (i) Whether opium grown by cultivators on behalf of the Narcotics Department was exigible to trade tax under the U.P. Trade Tax Act, 1948. (ii) Whether interest under section 8(1) of the U.P. Trade Tax Act, 1948 was mandatory and could be waived.

Issue (i): Whether opium grown by cultivators on behalf of the Narcotics Department was exigible to trade tax under the U.P. Trade Tax Act, 1948.

Analysis: The liability to trade tax was held to follow the Supreme Court's view that the transaction involving opium was taxable. The nature of the arrangement with cultivators did not take the matter outside the taxing provision, and the Tribunal's contrary view could not stand in light of the binding precedent affirming taxability of opium in such transactions.

Conclusion: The opium grown by the cultivators was held to be taxable under the U.P. Trade Tax Act, 1948, and the Department's revisions succeeded on this point.

Issue (ii): Whether interest under section 8(1) of the U.P. Trade Tax Act, 1948 was mandatory and could be waived.

Analysis: Section 8(1) was treated as mandatory in its language and operation. Once tax was held payable, interest followed as a statutory consequence, and the Court applied the settled principle that such interest cannot be waived or restricted by judicial discretion.

Conclusion: Interest under section 8(1) was held to be mandatory and the revisions seeking waiver of interest were dismissed.

Final Conclusion: The assessee's revisions failed and the Department's revisions were allowed, with the Tribunal's adverse view on taxability set aside and the orders of assessment restored where applicable.

Ratio Decidendi: Where the transaction is held taxable under the governing sales tax law, statutory interest attached to delayed payment is mandatory and cannot be waived by the Court.

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