9911796707
TMI Blog1983 (11) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... es tax declaration forms would not be accepted. The office order also directed the purchasers to pay the sales tax separately. Through the said office order, clause 10 of the special condition of contract No. 117 was amended. The amendment was incorporated in the letter of acceptance of the tender which forms part of the contract between the parties. Incorporation of the said term in the contract is also challenged in the present writ petitions. We may note the relevant provisions of the Act and Rules in regard to the exemption from sales tax: "4. (1) The tax payable by a dealer under this Act shall be levied ...... ........................ (2) For the purposes of this Act, 'taxable turnover' means that part of a dealer's turnover during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of opinion that it is necessary in the public interest so to do, by notification in the Official Gazette, exempt, subject to such restrictions and conditions as may be specified therein, any dealer or class of dealers from furnishing a declaration under the first proviso." "7. Conditions subject to which a dealer may claim deduction from his turnover on account of sales to registered dealers.-(1) A dealer who wishes to deduct from his turnover, the amount in respect of sales on the ground that he is entitled to make such deduction under the provisions of sub-clause (v) of clause (a) of subsection (2) of section 4, shall produce- (a) copies of the relevant cash memos or bills according as the sales are cash sales or sales on credit; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale value. Sales declaration form will not be accepted." The respondents have relied upon rule 7(1) but I do not think that the said rule helps the respondents. The words used in rule 7(1): "A dealer who wishes to deduct from his turnover, the amount in respect of sales on the ground that he is entitled to make such deduction under the provisions of sub-clause (v) of clause (a) of sub-section (2) of section 4" are very clear. Rule 7(1) states the procedure and the formalities to be completed before the exemption is claimed. The procedure is that copies of the cash memos and bills and the declaration form in ST-1 duly filled in should be produced by the purchasing dealer. The object of rule 7 is not to take away the right of the purchasin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and therefore void, it is obvious that no such term can be incorporated in a contract with the purchasing dealers. It is no answer to say that the purchasing dealers has agreed to the incorporation of an illegal term of a contract. It must be remembered that these are standard form contracts and being Government contracts are mostly one-sided. The citizen as a contracting party has no liberty to settle the terms of the contract as in the normal commercial contracts. If he is not to be out of business he has no option but to agree to the terms of contract already settled by the Government. A citizen has a right to expect that the Government will respect the statutory provisions and would not act contrary to it by imposing different terms i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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