2004 (6) TMI 609 - HC - VAT and Sales Tax

Summary

Issues:
1. Challenge to rule 42 of the Gujarat Sales Tax Rules, 1970 regarding set-off of sales tax.
2. Commercial disputes between petitioners and the National Dairy Development Board (NDDB).

Analysis:
1. The petitioners challenged rule 42 of the Gujarat Sales Tax Rules, 1970, which restricts the claim of set-off of sales tax to 90 percent in cases where the tax is not separately recorded in the invoices. The court referred to a Supreme Court decision regarding similar rules in the Bombay Sales Tax Act, emphasizing the authority's discretion to provide concessions. The court held that the challenge to rule 42 is not valid as the principle of allowing set-off is a concession, and the extent of deduction, whether one percent or ten percent, does not affect its applicability. Therefore, the challenge to rule 42 was rejected, and prayer (A) was dismissed.

2. The petitions also included prayers (B) and (C), which involved commercial disputes between the petitioners and NDDB. The court noted that such commercial disputes are not typically entertained under Article 226 of the Constitution, which deals with extraordinary writ jurisdiction. Therefore, prayers (B) and (C) were not granted. The court clarified that the petitioners could pursue these disputes in the appropriate forum if they are justiciable. Consequently, the court dismissed the petitions, discharging the rule in each petition with no order as to costs.