9911796707
TMI Blog2011 (1) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the meaning of Section 5 of the Central Sales Tax Act, 1956 (for short "the CST Act"). The present appeal relates to the assessment year 1990-91. The turnover of the paddy purchased by the dealer during the relevant year was subjected to purchase tax under Sections 6 and 15-A of the Act vide assessment orders dated 14th January, 1997 and 9th July, 1999. 3. Aggrieved by the said levy, the dealer preferred a writ petition before the High Court, challenging, inter alia, the substitution of Section 15-A in the Act vide Act 9 of 1993, with retrospective effect. 4. Before the High Court, it was conceded by the counsel for the dealer that the question of the constitutional validity of substituted Section 15-A was concluded against the dealer by virtue of the decision of a Full Bench of the High Court in United Riceland Limited and Anr. vs. State of Haryana and Ors.1, and therefore, the said issue did not survive for consideration. In so far as the merits of the assessments were concerned, the High Court was of the opinion that since an efficacious statutory remedy by way of appeal was available to the dealer and that the writ petition also suffered from delay and lac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra). 8. In order to appreciate the rival submissions, it would be expedient to examine relevant provisions of the Act. Section 9, as it stood prior to its deletion by Ordinance No.2 of 1990, provided that: "9. (1) Where a dealer liable to pay tax under this Act, (a) * * * (b) purchases goods, other than those specified in Schedule B, from any source in the State and uses them in the State in the manufacture of any other goods and either disposes of the manufactured goods in any manner otherwise than by way of sale in the State or dispatches the manufactured goods to the place outside the State in any manner otherwise than by way of sale in the course of inter-State trade or commerce or in the course of export outside the territory of India within the meaning of Section 5 of the Central Sales Tax Act, 1956; or (c) * * * In the circumstances in which no tax is payable under any other provision of this Act, there shall be levied, subject to the provisions of Section 17, a tax on the purchase of such goods at such rate as may be notified under Section 15." 9. The scope and ambit of Section 9(1)(b) of the Act, was succinctly explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was succeeded by Act No.4 of 1991 which came into effect from 15th April, 1991. Section 15 of Act No.4 of 1991 provided that: "The Haryana General Sales Tax (Second Amendment) Ordinance, 1990 (Haryana Ordinance No.2 of 1990), is hereby repealed." 11. Section 15-A was initially inserted in the Act on 25th January, 1990 and was given retrospective effect from 27th May, 1971. Presently, we are concerned with Section 15-A as substituted by Act No. 9 of 1993 retrospectively from 27th May, 1971. It provides: "15-A. Adjustment or refund of tax in certain cases.--Subject to the provisions of clause (iii) of proviso to sub-section (1) of Section 15 and subject to the conditions and restrictions, as may be prescribed:- (i) the tax leviable under this Act or the Central Sales Tax Act, 1956, on the sale of goods by a dealer, manufactured by him, shall be reduced by the amount of tax paid in the State on the sale or purchase of goods, other than the tax paid on the last purchase of paddy, cotton and oilseeds, used in their manufacture; and (ii) when no tax is leviable on the sale of manufactured goods except those specified in Schedule B, subject to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, during the aforesaid period, the assessee cannot complain of the denial of the benefit of adjustment and refund of purchase tax on the basis of Section 15-A of the Haryana Act. The position would, however, be different after 1-4-1991, when Section 9 was omitted from the Act." The Court finally summed up its conclusions as follows: "(1) In the specified circumstances in which charge of purchase tax on the raw material is imposed, clause (b) of sub-section (1) of Section 9 of the Haryana Act and the exemptions provided therein would apply; the law declared by this Court in Murli Manohar and Co., Hotel Balaji and K.B. Handicrafts holds the field; (2) while Section 9 remained on the statute-book till 1-4- 1991, retrospective amendments of Sections 2(p), 6, 15 and 15- A of the Haryana Act would make no difference in regard to levy of purchase tax on paddy; (3) adjustment of purchase tax paid on paddy (raw material) is permissible under Section 15-A of the Haryana Act during the relevant period; (4) by virtue of Section 15-A of the Haryana Act, denial of refund of purchase tax, if any, paid by a dealer is not illegal much less unconstitu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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