TMI Blog1979 (3) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... a, Advocate-General, Haryana, for the respondents. JUDGMENT:- DEWAN, J.- This judgment will dispose of four Writ Petitions Nos. 1925, 1967, 2162 and 2132 of 1975, which are constituted of similar facts and involve common questions of law. Material facts are not in dispute. The petitioner in each case is carrying on the business of sale and purchase of goods in the State of Haryana. Each one of them is a registered dealer and makes purchases of paddy and husks it into rice and is thus the last purchaser of paddy. The petitioners assert that they were not liable for the payment of purchase tax in respect of the purchases of paddy made by them under the Haryana General Sales Tax Act, 1973, as amended by the Haryana General Sales Tax (Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ights of a registered dealer. Subsection (i) of the section reads: "24. Every dealer registered under this Act shall be entitled to purchase, without payment of tax, the following goods within the State, on the authority of his certificate of registration by giving to the dealer, from whom the goods are purchased, a declaration, duly filled and signed by him, containing such particulars, on such form, obtained from such authority, as may be prescribed, and in case such form is not available with such authority, in such manner, as may be prescribed,- (a).................................................. (b).................................................. (i) resale in the State; or". By section 2 of the amending Act, a new sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel submitted that the power to amend an existing Act could not extend beyond making "small repairs" therein and that the amendments as made in the Act far exceeded such limits. In support of the contention, the learned counsel relied upon the judgment of the Supreme Court in the case of Krishnamurthi and Co. v. State of Madras[1973] 31 S.T.C. 190 at 197 (S.C.). In order to judge the merit of the contention, it appears necessary to state shortly the facts of the case before the Supreme Court. According to entry 47 in the First Schedule to the Madras General Sales Tax Act, 1959, the sale of "lubricating oils, all kinds of mineral oils (not otherwise provided for in the Act), quenching oils and greases" was liable to sales tax. Under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act was intended to cure an infirmity as revealed by the judgment of the High Court and to validate the past levy and collection of tax in respect of all kinds of non-lubricating mineral oils, including furnace oil, with effect from April 1, 1964. The legislature for this purpose split the original entry 47 into two entries, 47 and 47-A. The new entry 47 related to lubricating oils (not otherwise provided for in the Act), quenching oils and greases, while entry 47-A covered all kinds of mineral oils (other than those falling under item 47 and not otherwise provided for in the Act) including furnace oil. The tax levied by entry 47-A, in our opinion, was not a fresh tax. It seems, as mentioned earlier, that the legislature had intended as a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to validate the proceedings, including realisation of tax, which have taken place in pursuance of the earlier enactment which has been found by the court to be vitiated by an infirmity. Such an amending and validating Act in the very nature of things has a retrospective operation. Its aim is to effectuate and carry out the object for which the earlier principal Act had been enacted. Such an amending and validating Act to make "small repairs" is a permissible mode of legislation and is frequently resorted to in fiscal enactments. As observed in 73 Harvard Law Review 692 at page 705: 'It is necessary that the legislature should be able to cure inadvertent defects in statutes or their administration by making what has been aptly called "smal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve, the Haryana Legislature did no more than to remove the lacuna in the Act. This is evident from the objects and reasons responsible for the amendments and the financial memorandum appended to the Bill termed "The Haryana General Sales Tax (Second Amendment) Bill, 1976", which are reproduced below: "STATEMENT OF OBJECTS AND REASONS 'The amendments and provisions have been necessitated to overcome certain lacunae experienced in the working of the Act and also to remove certain difficulties experienced by the trading community.' FINANCIAL MEMORANDUM 'For carrying out the purposes of this Bill there will be no additional financial burden on the State exchequer. In order to clarify the existing position and remove certain difficulties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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