Lump sum sales tax liability under a statutory scheme is binding despite closure of business or nil turnover.

A dealer who voluntarily opted for lump sum sales tax under Section 7-D of the U.P. Sales Tax Act remained bound by the scheme and the agreement executed under it. The liability was governed by the terms accepted by the dealer, not by actual turnover, and the dealer could not seek a reduced amount or resile from the undertaking merely because the unit had closed or the turnover was nil. The contractual arrangement under the statutory scheme controlled the tax obligation, so closure of business did not extinguish the agreed lump sum liability.

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Issues: Whether a dealer who had opted for payment of sales tax in a lump sum under the statutory scheme could avoid the agreed liability on the ground that the unit was closed and the actual turnover was nil.

Analysis: The lump sum payment scheme under Section 7-D of the U.P. Sales Tax Act created a liability governed by the terms of the scheme and the agreement executed thereunder. The obligation undertaken by the dealer was not dependent on the dealer's actual turnover. The agreement specifically barred the dealer from seeking a reduced amount or resiling from the arrangement, and the dealer's rights were regulated by the contractual terms accepted under the scheme.

Conclusion: The dealer remained bound by the lump sum liability and could not avoid payment on the basis of closure of the unit or nil turnover.

Ratio Decidendi: Where a dealer voluntarily elects to pay tax under a statutory lump sum scheme, the liability is determined by the scheme and the agreement, not by actual turnover, and the dealer cannot later resile from that undertaking.

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