Lump sum sales tax election remains binding despite closure, nil turnover, and disputed acceptance timing.

A dealer who elects to pay sales tax in a lump sum under Section 7-D of the U.P. Sales Tax Act remains bound by that election, because the liability is founded on the agreed fixed amount and not on actual turnover. Closure of the unit, nil turnover, or turnover lower than expected does not the dealer from the election once validly made. A further contention that the offer was not accepted within the stipulated time was treated as dependent on disputed facts and was not examined in writ proceedings. The article thus affirms the binding nature of the lump sum option and limits factual challenges to its formation in writ jurisdiction.

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Issues: Whether a dealer who elects to pay sales tax in a lump sum under Section 7-D of the U.P. Sales Tax Act can avoid the election on the ground that the unit remained closed or that the turnover was nil or inadequate, and whether the plea that the offer was not accepted within time could be examined in these proceedings.

Analysis: A prior Division Bench view was affirmed that, once the option to pay tax in a lump sum under Section 7-D is exercised, the demand rests on the agreement to pay a fixed amount and is not tied to the actual turnover. On that footing, closure of the unit, nil turnover, or turnover lower than anticipated does not release the dealer from the binding effect of the election. The further plea that the offer was not accepted within the stipulated time depended on disputed facts and was considered unsuitable for examination in writ proceedings.

Conclusion: The lump sum election remained binding, and the factual challenge to the formation of the agreement was not entertained in these proceedings.

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