9911796707
TMI Blog2012 (1) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... l Sales Tax Act, 1973 (in short, "the Act") from May 17, 1988 whereas the notification had been issued on March 26, 1991. Consequential prayer has also been made for setting aside assessment order dated July 10, 1991 for the year 1989-90 (annexure P/3) to the extent it creates liability on that basis. 2. Briefly, the facts as narrated in the petition may be noticed. The petitioner is a partnership firm and a registered dealer under the Act and also Central Sales Tax Act, 1956. It is carrying on the business of flour mill at Ambala City. The petitioner-firm is filing its sales tax returns regularly and depositing the amount of tax. It challenges the legality and validity of the notification dated March 26, 1991 issued by respondent No. 1 un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the apex court in State of U.P. v. Deepak Fertilizers and Petrochemical Corporation Ltd. [2007] 7 VST 535 (SC); [2007] 30 PHT 1 (SC). It was submitted that the State is empowered to issue prospective notifications and the notification having its applicability retrospectively from May 17, 1988 was bad. 4. It was further submitted that the petitioner prior to amendment was not liable to pay any tax on the purchase of wheat from within the State and it was only the flour and its by-products manufactured by the petitioner which were liable to tax. Now by virtue of retrospective amendment in Schedule D by notification dated March 26, 1991, annexure P1, the petitioner has been made liable to pay tax on the stocks lying with the petitioner by m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State; (2) in the course of interState trade or commerce; (3) in the course of export out of the territory of India; (b) used in the manufacture of taxfree goods." After the amendment, relevant entry of Schedule D reads thus: "2.Cereals (except wheat, paddy and rice) and pulses as defined in section 14 of the Central Sales Tax Act, 1956 (i) When sold within the State to a person other than a registered dealer making use of the authority of his registration certificate. First sale b a dealer liable to pa tax under this Act. (ii) when purchased within the State from any source without payment of tax; and Last purchase within the State by a dealer liable to pay tax under this Act. (a) disposed of whether as such or after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rospective effect and even subordinate legislation can be allowed to be made retrospectively, subject to certain limitations, exercise of such power has to be consistent with article 14 and if arbitrary, the same can be struck down. When exercise of retrospective power of legislation can be held to be arbitrary, has necessarily to be judged on the merits of the amendment in a given fact-situation. 10 and 11. . . . 12. Applying the above principles, it is seen that by the impugned notification the rates of tax have been revised which has been given effect for a period of nine months prior to the date of notification. In reply, there is no justification as to what was the relevance of the earlier date for fixing higher rate of tax. Conferme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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