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TMI Blog1995 (11) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1 pursuant to the amendment Act and the notification. It is also prayed that the set-off may be permitted with interest from August 1, 1985 onwards to members of petitioner No. 1 and petitioner No. 2. 2.. Petitioner No. 1, Guru Nanak Timber Market Merchants Association is an association of timber merchants and petitioner No. 2 is its member. They are registered under the Madhya Pradesh General Sales Tax Act, 1958 (for short, "the Act"), as dealers. They deal in timber. During the course of their business, the timber merchants purchased logs of timber from the Forest Department of the Government of Madhya Pradesh and sales tax is required to be paid by the timber merchants to the Forest Department at the time of payment of price. The t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a process of manufacture by amending the definition of section 2(j) of the Act. Accordingly, after August 1, 1985, timber merchants purchasing logs from the Forest Department, were undisputedly liable to pay tax at 17 per cent and not on concessional rate of 3.5 per cent. This increase the tax liability of the merchants. 4.. The association, represented before respondent No. 1 that a clarification may be issued whether this notification will affect the past transactions or not, but without any result. Meanwhile, M.P. Samanya Vikraya Kar (Vishesh Upbandh) Adhiniyam, 1986 (No. 12 of 1986) came into force which provided for a special provision with regard to levy of tax in certain circumstances on the timber held in stock on August 1, 1985 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective effect, nor creates two classes, as submitted by learned counsel. According to the Statement of Objects and Reasons, it is an Act to make special provisions with regard to levy of tax in certain circumstances on timber held in stock on 1st August, 1985 and grant of set-off in respect of tax-paid goods held in stock on May 15, 1986 and used thereafter as raw material or incidental goods in the manufacture of other goods for sale. On account of amendment in the definition 2(j), a contingency has arisen to cater for this between two periods as to how the tax is to be computed. In order to meet this contingency, this enactment has been promulgated. Therefore, we are of the opinion that neither it is violative of any constitutional provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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