N PULLAYYA Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution of India for a declaration that the provisions of the Andhra Pradesh General Sales Tax (Amendment) Act, 1963 (Act 16 of 1963) introduced into the Andhra Pradesh General Sales Tax Act in so far as they pertain to a miller who is not a wholesale dealer or a retail dealer are null and void and ultra vires the powers of the Legislature of the State of Andhra Pradesh and for the issue of a writ of mandamus restraining the State of Andhra Pradesh from enforcing the said provisions against the petitioner.

(2.) THE petitioner is a miller whose business consists in milling rice for hire only. He is neither a purchaser of paddy nor seller of rice. According to him, for about 30 customers 15 to 20 bags of paddy are milled per day at the rate of Re. 1 per bag out of which he has to pay the electricity charges and labour. The Union Government enacted the Rice Milling Industry (Regulation) Act, 1958 (Act 21 of 1958) which came into force on 18th May, 1958, regulating the business of milling and he has been conforming to the provisions of the said Act. While so, the State Legislature has introduced certain provisions by the Amending Act 16 of 1963. It is the petitioner's grievance that the said provisions imposed excessive and arbitrary restrictions violative of Articles 14, 19 and 31 of the Constitution and burdens on the petitioner's business as miller though as a miller, who is not a dealer, he is not liable to tax under the provisions of the Andhra Pradesh General Sales Tax Act.

(3.) BEFORE we address ourselves to the contentions raised, we may briefly refer to the provisions impugned before us :- Section 2 (i-1) of the Act defines "miller" as the person who engages himself in rice milling operations in a rice mill and includes a person who, or the authority which, has the ultimate control over the affairs of the rice mill. Section 12-A (1) (b) of the Act says that a miller who is not a whole-sale dealer or a retail dealer shall also get himself registered under the Act. Section 12-A (2) and (3) provide for applications for registration and the payment of the prescribed fees for registration. Rule 45-A of the Rules made under the Act says that every miller who is not a wholesale dealer or a retail dealer receiving paddy into his mill for conversion into rice shall maintain certain registers which are enumerated therein, viz. , a register of working of the mill in Form XV; a day to day account of paddy milled for rice in Form XVI; and a register of stocks in Form XVII. He shall also maintain a register in Form XV showing hour to hour working of the shelter and huller and the number of coolies employed for shelling and hulling. He shall also obtain from each person who entrusts him with paddy for conversion into rice, a declaration in Form XVIII. The declarations so obtained shall be serially numbered.