STATE OF HIMACHAL PRADESH Vs. YASH PAL GARG

JUDGEMENT

(1.) THE High Court of Himachal Pradesh by judgment and order dated 10.12.1990 allowed civil writ petitions no. 58 of 1978 etc. filed by the respondents challenging the validity of the provisions of the Himachal Pradesh Taxation (On Certain Goods Carried by Road) Act, 1976 (no. 34 of 1976) (hereinafter referred to as "the 1976 Act") and held that the said provisions were un- constitutional and invalid. THE Court held thus :-

(2.) THE High Court also directed that the amount deposited towards the tax be refunded in terms of interim orders.

(3.) THE aforesaid Act was also challenged by filing Civil Writ Petition No. 377/91 etc. before the High Court. By judgment and order dated 13th December 1994, the writ petitions were allowed and the 1991 Act was also declared ultra vires and void ab initio. THE State government was directed to refund the tax already collected. THE court after considering various decisions' rendered by this Court held that the impugned Act would attract application of Article 301 and require compliance of Article 304 (b) of the Constitution of India. THE court also observed that the Act under consideration merely because it was referable to Entry 56 of State List in the Constitution would by itself not be sufficient to hold that it is regulatory or compensatory in nature and that the nature of the law is not what its Preamble states it to be. THE court thereafter referred to the earlier decision rendered by it in M/s Yashpal Garg's case and held that it was not permissible to the State Legislature to overrule the said decision pending appeal before the Supreme Court. THE court observed that the effect of court's judgment holding the 1976 Act constitutionally invalid was to obliterate the same from the statute book and hence, there was nothing to be repealed by the State Legislature. Hence, the writ petitions were allowed. SUBMISSIONS :-