THE SOUTHERN INDIA COTTON WASTE MERCHANTS AND EXPORTERS ASSOCIATION AND Vs. THE UNION OF INDIA (UOI), REP. BY THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE,

JUDGEMENT

(1.) THE first writ petition is filed by the Southern India Cotton Waste Merchants and Exporters Association seeking for a direction to the respondents to forbear from demanding Central Sales Tax (CST) on inter -State sale of waste cotton effected by the members of the Association over and above 4% as indicated in G.O.Ms. No. 693, CT & RE Department, dated 19.6.1982 of the second respondent. A list of members of the petitioner Association has been included in the typed set filed along with the writ petition.

(2.) W .P. No. 615 of 1998 was filed by the petitioner Abba Traders challenging the order of the fourth respondent (DCTO, Coimbatore, R.S. Puram West Circle) dated 19.12.1997 wherein the Central Sales Tax was sought to be levied at 10% on the cotton waste not covered by 'C' forms.

(3.) THE State Government issued G.O.Ms. No. 693, CT & RE Department, dated 19.6.1982 based on the request made by the Chamber of Commerce, Coimbatore about their difficulties in having exposed to the risk of paying enhanced rate of CST for non -production of 'C' forms and loss of business due to competition from Maharashtra and Gujarat. In the operative portion of the order in paragraphs 2 and 3, the State Government had given a direction, which is as follows: