SWASTIK ROADWAYS Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioners by this writ petition have challenged the validity of Sections 57, 58 and 59 of the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (known as M. P. Commercial Tax Act) and have prayed that the same may be declared as ultra vires of the Constitution of India, as Entry 54 of List-II of Vllth Schedule of the Constitution, the State Legislature is not competent to legislate and cover the transporter/carrier subject to the provisions of the M. P. Vanijyik Kar Adhiniyam, 1994, (hereinafter referred to as the Act of 1994') which repealed the M. P. General Sales Tax Act, 1958.

(2.) THE petitioners are carrying on business of clearing and forwarding agents. They receive goods for being consigned to outside the area of their operation as also receive goods from place to place outside their principal place of business for delivery to consignees. In short, they are clearing and forwarding agents or Dalals transporting goods. They also provide warehouse facilities to the consignors so long as the goods are not delivered to them or despatched to places other than the place of their business. The Act of 1994 came into force with effect from 1-4-1995. It received the assent of the President on 7-1-1995 and the assent was published in the M. P. Gazette (Extraordinary) dated 7-2-1995. The validity of the three provisions, i. e. Sections 57, 58 and 59 of the Act, have been challenged by this petition.

(3.) AS per the said three provisions, the petitioners are required to furnish information and such particulars, including the statement of accounts, and affairs verified in the manner specified by the Commissioner, as he may require in respect of transactions of any dealer with them provided the petitioner handle the documents of title to goods or transport goods. By virtue of Section 57 (2) of the Act, a penalty is provided of a sum equal to three times the amount of tax payable in respect of the goods involved in the transaction referred to above. Section 58 of the Act, speaks of control on clearing and forwarding agents to prevent or check evasion of tax. Section 59 of the Act defines 'clearing and forwarding agent' as including a person engaged in collecting goods from any place inside the State, including Railway premises, and arrange for transport and/or delivery of such goods to the principal or any other person or carrier of goods and on behalf of the principal and in the process of collection, transport or delivery handles documents of title to such goods. For ready reference, Sections 57, 58 and 59 are reproduced as under :