TMI Blog2012 (4) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... r document stipulating absolute prohibition of sales against “C” Form/CST will not be allowed. Imposition of such a condition would be arbitrary, ultravires, and violative of Article 14 of the Constitution. - WRIT PEITION (L) NO.83 OF 2012 - - - Dated:- 22-3-2012 - DR. D.Y. CHANDRACHUD M.S. SANKLECHA, JJ. Mr. Prateek Kasliwal with Ms.Prerna Silimkar i/b. M/s.Mehta Girdharilal for the Petitioner. Mr.Ricob Chand with Mr.Rahul Sinha i/b. M/s.DSK Legal for Respondent ORAL JUDGMENT (PER DR.D.Y.CHANDRACHUD) : Rule, by consent returnable forthwith. With the consent of Counsel and at their request, the Petition is taken up for hearing and final disposal. 2. The Petitioner is the proprietor of a concern which engages in the business of electrical items, including the purchase and sale of meter accessories, old meters, meter parts and other electrical goods. The Petitioner has a registration certificate issued under the Rajasthan VAT Act, 2003, dated 26 September 1988 issued with reference to the provisions of Sub-sections (1) and (3) of Section 8 of the Central Sales Tax Act, 1956 inter alia in regard to metal scrap, meter parts, electrical meters and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a. Moreover, it has been submitted in the affidavit that the principal reason for not allowing the facility of C Form is that once the material is sold to the highest bidder, the First Respondent does not have control on the movement of the goods and it is the responsibility of the First Respondent to recover all applicable taxes, failing which it would have to pay any penalty that may be imposed by the State Sales Tax authority. Consequently, a decision was taken by the First Respondent to treat all such sales as local sales. 5. Under Article 246(1) read with Entry 92A of the Union List to the Seventh Schedule of the Constitution, Parliament has exclusive legislative competence to impose taxes on the sale or purchase of goods, other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce. In so far as the States are concerned, under Article 246(3) read with Entry 54 of the State List, State legislation can impose taxes on the sale or purchase of goods other than newspapers, subject to the provisions of Entry 92A of List I. Section 3 of the Central Sales Tax Act, 1956 stipulates that a sale or purchase of goods shall be deemed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority under the Act to the registered purchasing dealer. If the C Form containing the relevant particulars is issued by the purchasing dealer to the selling dealer, the selling dealer would collect the tax from the purchasing dealer at the rate prescribed in Section 8(1) or else at the higher rate as prescribed by Section 8(2). The particulars which are referred to in the C Form are: the name of the issuing State, the office and date of issue, name of the purchasing dealer together with his registration certificate number, the validity of the registration and the particulars of goods purchased together with the bill for purchase. The selling dealer is required to produce the C Form in his assessment proceedings, if he wishes to pay tax at a lower rate as prescribed in Section 8(1). These principles are well established in view of the decision of the Supreme Court in State of Rajasthan vs. Sarvottam Vegetables Products.(1996) 8 SCC 639 6. For the purposes of Section 3(1) (a) a sale is due to take place in the course of inter-State trade or commerce if the sale or purchase occasions the movement of goods from one State to another. Now, it is a well settled principle of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n our opinion, the High Court ought not to have decided and declared that the transactions in question would be purely and simply intra-state sales and not inter-state sales. Consequently, this Court would not be acting within its parameters under Article 226 of the Constitution by enquiring into whether the tender condition which has been embodied in the auction notice of the First Respondent involves essentially an intra-state sale or a sale in the course of inter-state trade and commerce. That is a matter for the assessing authorities to determine in the course of proceedings under the Act. The second principle which must be borne in mind is that ordinarily, a tender condition which is imposed by the authority which invites bids is not subject to judicial review. The Court would, however, exercise its writ jurisdiction under Article 226 of the Constitution in a restricted and limited area where the tender condition is found to be contrary to statute or contrary to a constitutional guarantee such as Article 14 of the Constitution. 8. Bearing in mind, the aforesaid principles, it is evident that what clause 7.8 of the tender conditions stipulates is that normally all sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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