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TMI Blog2011 (1) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... Gaurav Teotia for Kamal Mohan Gupta, Adv. for the Respondent JUDGEMENT D.K. Jain, J:- 1. This appeal, by special leave, is directed against the judgment dated 3rd August, 2000 delivered by the High Court of Punjab and Haryana, whereby the writ petition filed by the appellant herein, questioning the Constitutional validity of Haryana General Sales Tax (Amendment) Act 9 of 1993 (for short "Act 9 of 1993"), substituting Section 15-A in the Haryana General Sales Tax Act, 1973 (for short "the Act") retrospectively w.e.f. 27th May, 1971, has been dismissed. 2. The appellant (hereinafter referred to as "the dealer"), a registered dealer under the Act, was engaged in the business of purchase and dehusking of paddy to produce rice, in the State of Haryana. Rice so produced was exported outside the country within 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve from the date of the ordinance i.e 15th October, 1990. It was urged that if at all the dealer was eligible for the benefit of the exemptions under Section 9(1)(b) of the Act, it would only be for a part of the year and not for the whole of the assessment year, as initially claimed. While supporting the impugned judgment, learned counsel contended that the High Court had rightly dismissed the dealer's writ petition as barred by laches, and had correctly relegated them to the statutory remedy under the Act in light of the decision of this Court in M/s. Titagarh Paper Mills Ltd. vs. Orissa State Electricity Board and Anr.7. It was asserted that dealer's challenge to the levy of purchase tax cannot survive after this Court had upheld the validity of Section 15-A of the Act in Satnam Overseas (Export) (supra). 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors.10, it was held as under: "...we conclude that specific charging provision of Section 9(1)(b) will be attracted as the assessee purchased paddy (which is not one of the goods specified in Schedule B), procured rice (manufactured goods) from the said paddy and exported rice outside the territory of India, on which no purchase tax was payable under the general charging provision of Section 6 which is, inter alia, subject to the provisions of Section 9. We have already held above that the assessees will not be liable to pay tax on the purchase of such paddy in view of the provisions of clause (b) of sub-section (1) of Section 9 in the assessment years in question, or, for that matter, any assessment year ending before 1-4-1991." 10. Ordinance No.2 of 1990 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax has been levied on sale or purchase of such paddy inside the State. This relief is incorporated by the Haryana Act in clause (iii) of the proviso to sub-section (1) of Section 15. Even clause (b) of sub-article (1) of Article 286 does not provide for exemption of tax on the purchase of paddy. There is no other provision either in Article 286 or in the CST Act which bars a State from levying tax on the sale or purchase of paddy which is not exported out of the territory of India. Section 15-A proceeds on the premise that purchase tax is payable, inter alia, on paddy. From the above discussion, it is clear that before the omission of Section 9 from the Haryana Act, no purchase tax was payable on paddy under Section 6 of the Act, 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, claus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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