MODERN AUTOMOBILES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are the successful tenderers for the purchase of surplus stores of the Director General, Supplies and Disposal, (DGSD) Govt. of India. The Director General as well as the petitioner arc registered dealers under the Delhi Sales Tax Act, 1975.

(2.) In these petitions the petitioners have challenged the validity of Office Order No. 120 dated 28.12.1981, issued by the DG Supplies and Disposal directing that the purchasers will not be entitled to exemption and that the sales-tax declaration forms would not be accepted. The Office Order (0.0.) also directed the purchasers to pay the sales-tax separately. Through the said 0.0. Clause 10 of the special conditions of contract No. 117 was amended. The amendment was incorporated in the letter of acceptance of the tender which forms part of the contract between the parties. Incorporation of the said term in the contract is also challenged in the present writ petitions. [In para 2, Ss. 4 & 5 are reproduced].

(3.) The contention of the respondents is that neither the Act nor the Rules confer any right on the purchasing dealer for an exemption. The selling dealer is not statutorily or legally bound to accept the declaration form (ST-T) from the registered purchasing dealer. It is then submitted that even assuming that such a right is created under the Act and Rules the said right is abandoned/waived by the petitioners by entering into a contract containing the contrary term. It is also submitted that in view of the Arbitration Clause under the contract this court should not entertain the writ petition.