9911796707
TMI Blog2012 (1) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... duced from eight per cent to six per cent up to March 31, 1992, which was later on continued up to March 31, 1994 vide notification dated August 20, 1992 (annexure P3). However, vide notification dated December 1, 1992, the rate of nine paise in a rupee on motor tyres and tubes and six paise in a rupee on tractor tyres and tubes has been made effective from August 20, 1992 instead of April 1, 1992 without giving any reasonable ground for adopting such date. Further, the petitioner has refunded ₹ 10,79,659 on the basis of notification, annexure P3, which fact has not been specifically denied by the respondents in the reply. The notification, annexure P5, thus, cannot be held to be valid and is hereby quashed. The respondents cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31, 1992. However, on August 20, 1992, the Punjab Government in exercise of powers conferred under section 5(1) of the Punjab General Sales Tax Act, 1948 (in short, the Act ) introduced amendment in the notification dated December 2, 1982 to the effect that the rate of tax on motor tyres and tubes shall be nine paise in a rupee and at the rate of six paise in a rupee on tractor tyres and tubes with effect from April 1, 1992 to March 31, 1994. Further amendment was made vide notification dated December 1, 1992, annexure P5, that reduced rate of sales tax on the items in question was to be effective from August 20, 1992 and not from April 1, 1992, meaning thereby the amount of tax for the period from April 1, 1992 to August 20, 1992 was to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. S.0.57/P.A.4648/s.5/90 dated November 9, 1990, was issued whereby the aforesaid rate was reduced to nine paise in a rupee on motor tyres and tubes till March 31, 1992. Vide Notification No. S.0.P.A.46/48/S.5./90 dated December 28, 1990, the rate was reduced to six paise in a rupee on tractor tyres and tubes. Subsequently, vide annexure P3, Notification No. S.O.61/P.A.46/48/S.5/Amd/92 dated August 20, 1992 was issued extending the validity period of the reduced rates for the period from April 1, 1992 to March 31, 1994. However, on December 1, 1992, the State Government issued Notification No. S.0.93/P.A.46/48/S.5/Amd/92 dated December 1, 1992, annexure P5 whereby notification annexure P3 was made effective from August 20, 1992 instea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and even subordinate legislation can be allowed to be made retrospectively, subject to certain limitations, exercise of such power has to be consistent with article 14 and if arbitrary, the same can be struck down. When exercise of retrospective power of legislation can be held to be arbitrary, has necessarily to be judged on the merits of the amendment in a given fact-situation. 10 and 11. . . . 12. Applying the above principles, it is seen that by the impugned notification the rates of tax have been revised which has been given effect for a period of nine months prior to the date of notification. In reply, there is no justification as to what was the relevance of the earlier date for fixing higher rate of tax. Conferment of exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner has refunded ₹ 10,79,659 on the basis of notification, annexure P3, which fact has not been specifically denied by the respondents in the reply. The notification, annexure P5, thus, cannot be held to be valid and is hereby quashed. The respondents cannot be held entitled to charge sales tax at 12 paise in a rupee on motor tyres and tubes and at eight paise in a rupee on tractor tyres and tubes from April 1, 1992 to August 20, 1992. 8. In view of the above, the writ petitions are allowed. It is held that the petitioners shall be liable to pay sales tax for the period from April 1, 1992 to August 20, 1992, in accordance with the notification, annexure P3 and the assessing authority shall determine the liability, if any, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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