1971 (5) TMI 64 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the writ petitions involving a dispute between the Government of India and the State of Haryana are maintainable in the High Court or exclusively determinable by the Supreme Court under Article 131 of the Constitution.

Comprehensive Analysis:
The judgment delivered by the Punjab and Haryana High Court pertained to five writ petitions filed by a Government Medical Store Depot against the State of Haryana and the Excise and Taxation Officer, Karnal. The petitioner-depot, being a department of the Government of India, contended that it should not be registered as a "dealer" under the Punjab General Sales Tax Act, 1948, and thus not liable for sales tax assessment. On the other hand, the State of Haryana argued that the petitioner was indeed a dealer and should be assessed for sales tax on medical goods sold. The key issue revolved around the maintainability of these petitions in the High Court in light of Article 131 of the Constitution, which grants exclusive jurisdiction to the Supreme Court in disputes between the Government of India and states or between states themselves.

The first condition for the exclusion of jurisdiction of courts other than the Supreme Court under Article 131 is that the dispute must be between the Government of India and one or more states. The court found that this condition was met as the petitioner-depot, being a part of the Government of India, was in dispute with the State of Haryana. The second condition requires the dispute to involve a question on which the existence or extent of a legal right depends. In this case, the disagreement over the petitioner's liability for sales tax fulfilled this condition, thus invoking the jurisdiction under Article 131.

The court emphasized that Article 131 restricts the jurisdiction of all courts other than the Supreme Court in such disputes, mandating that only the Supreme Court has the authority to determine the issues raised between the parties. Consequently, the High Court held that the writ petitions were not maintainable in their court and dismissed them, suggesting that the petitioner could seek remedy in the Supreme Court for resolution of the disputed questions against the State of Haryana.

In conclusion, the judgment underscored the exclusive jurisdiction of the Supreme Court in disputes falling under Article 131 of the Constitution, thereby rendering the writ petitions between the Government of India and the State of Haryana not maintainable in the Punjab and Haryana High Court.