1968 (8) TMI 178 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of provisions regarding reorganisation of states under the Punjab Reorganisation Act, 1966.
2. Validity and legality of notifications issued under the Punjab General Sales Tax Act, 1948.
3. Authority to issue notifications for amending tax schedules in the Union Territory of Chandigarh.
4. Definition of "law" under the Punjab Reorganisation Act, 1966 and its application to notifications.
5. Consideration of notifications issued before and after the reorganisation of states.
6. Effectiveness of notifications in amending tax schedules under the Punjab General Sales Tax Act, 1948.
7. Application of Section 88 of the Punjab Reorganisation Act, 1966 to notifications issued by the Union Territory of Chandigarh.
8. Declaration of the impugned amendment as invalid and not in accordance with the law.

Analysis:
1. The judgment concerns the interpretation of provisions under the Punjab Reorganisation Act, 1966, specifically regarding the reorganisation of states and the definition of the "existing State of Punjab" and its successor states, including the Union Territory of Chandigarh. The appointed day for reorganisation was 1st November 1966, and the Act defines the existing state and successor states accordingly.

2. The legality and constitutional vires of notifications issued under the Punjab General Sales Tax Act, 1948 are questioned. The issue arises from notifications issued by the "existing State of Punjab" before reorganisation and subsequent notifications by the Chief Commissioner of the Union Territory of Chandigarh. The challenge is based on the process of amending tax schedules and the authority to issue such notifications.

3. The authority to issue notifications for amending tax schedules in the Union Territory of Chandigarh is disputed. The petitioner challenges the notification issued by the Chief Commissioner of the Union Territory of Chandigarh, arguing that the Central Government should have been the competent authority to issue such notifications under the Punjab General Sales Tax Act, 1948.

4. The definition of "law" under the Punjab Reorganisation Act, 1966 is crucial in determining the validity of notifications. The judgment delves into whether notifications issued by the "existing State of Punjab" before reorganisation qualify as "law" under the Act's definition, emphasizing the enforceability and recognition by courts as key criteria.

5. The judgment considers notifications issued both before and after the reorganisation of states. It analyzes the legal status of notifications issued by the "existing State of Punjab" pre-reorganisation and their impact on subsequent actions taken by the Union Territory of Chandigarh post-reorganisation.

6. The effectiveness of notifications in amending tax schedules under the Punjab General Sales Tax Act, 1948 is a central issue. The judgment scrutinizes whether the notifications issued by the concerned authorities were legally sound and compliant with the statutory requirements for amending tax schedules.

7. The application of Section 88 of the Punjab Reorganisation Act, 1966 to notifications issued by the Union Territory of Chandigarh is pivotal. The judgment assesses whether the notifications align with the provisions of the Act and whether they are legally valid in the context of the reorganisation of states.

8. Ultimately, the court declares the impugned amendment as invalid and not in accordance with the law. The judgment concludes by accepting the petition and ruling that the amendment to the tax schedule was not legally valid. No costs are awarded in the matter.