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TMI Blog1966 (4) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 540-D of 1959. The petitioner is a building contractor carrying on the business of execution of building contracts in the Union Territory of Delhi. For the year 1954-55 the petitioner was assessed to sales tax of Rs. 13,945-14-0 on part of the payments received by him on account of the execution of various building contracts. Besides that, a penalty of Rs. 200 was also imposed on the petitioner by on order of the Sales Tax Officer dated 8th December, 1955, for non-filing of returns. Sale price liable to sales tax was determined in accordance with rule 28 of the Delhi Sales Tax Rules, 1951. After various proceedings by way of appeals and revisions the matter was sent back to the Sales Tax Officer to re-examine the case, who, with resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reason that there is sweeping delegation of legislative power. The decisions relied upon are: (1) Pandit Banarsi Das v. State of Madhya Pradesh and Others[1955] 6 S.T.C. 93., (2) C. Damodaran v. The Agricultural Income-tax and Rural Sales Tax Officer, Devicolam, and Others[1956] 7 S.T.C. 417., (3) Jubilee Engineering Co., Ltd. v. Sales Tax Officer, Hyderabad City, and Others[1956] 7 S.T.C. 423., (4) Kenchappa and Others v. Sales Tax Officer, Fourth Circle, Bangalore[1957] 8 S.T.C. 329., (5) Bhuramal and Others v. State of Rajasthan[1957] 8 S.T.C. 463. and (6) Dukhineswar Sarkar Bros. Ltd. v. Commercial Tax Officer and Others[1957] 8 S.T.C. 478.. In Bhuramal's case[1957] 8 S.T.C. 463., a Division Bench of the Rajasthan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the deduction has been made according to Rule 7, is only the price of materials supplied or also includes something over and above that. It is obvious that if it includes something over and above that, the Legislature is taxing not only the sale price of the goods, but also the labour supplied by the contractor, and the work of the contractor himself, which, of course, it could not do under entry 54. Consequently this artificial rule cannot be sustained as a valid piece of legislation under entry 54. " Similarly, in Dukhineswar Sarkar's case[1957] 8 S.T.C. 478., the provisions of the Bengal Finance (Sales Tax) Act, 1941, in so far as they sought to bring within the net of taxation goods including materials, commodities and articles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cution of a contract)-such portion of the amount of the money consideration for the contract as may be prescribed, representing the price of the goods supplied; (ii) in other cases of sale-the amount of the money consideration for the sale, less any sum allowed as cash discount according to ordinary trade practice, but including any sum charged for anything done by the dealer in respect of the goods at the time of, or before delivery thereof, other than the cost of freight or delivery or the cost of installation when such cost is separately charged." In short, the argument is that the Legislature has completely effaced itself and left it absolutely to the discretion of the executive to include any portion of the money consideration, rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principles within the frame-work of which the delegate has to act, there is no illegal delegation. By enacting section 2(h) of the said Act, the Legislature has delegated the law-making power to the executive without providing any guiding principles or laying down any standards. Rule 28 enacted in exercise of power under section 2(h) cannot be sustained. In the result, it must be held that rule 28 suffers from the vice abovementioned and is a bad piece of legislation. A writ of certiorari, therefore, must issue quashing the assessment order dated 10th August, 1959, made by the Sales Tax Officer and the consequent demand notice dated 14th August, 1959. With respect to the years 1955-56 and 1956-57 it is stated by the petitioner that the S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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