RUCHI FABRICS LTD Vs. STATE OF M P

JUDGEMENT

(1.) PETITIONER by this petition has prayed that Notification F. No. A-3-32-90-ST-V (89), dated September 20, 1990 (annexure P1) may be declared as ultra vires of the power of the State Government so as to amend entry No. 6 of Schedule I appended to the M. P. General Sales Tax Act, 1958 (for short "the Act" ).

(2.) BRIEF facts giving rise to this petition are that the petitioner, M/s. Ruchi Fabrics Ltd. , is a company registered under the Companies Act, 1956 with its registered office at 32-33-34, Sector D-2, Industrial Area, Sanwar Road, Indore. The petitioner carries on the business of manufacture and sale of woven fabrics of cotton yarn which are not subjected to any process. All varieties of cloth were tax-free under entry 6, Schedule I of the Act. Entry 6 reads as under :

(3.) LEARNED counsel wanted us to read sub-section (2) to the limited extent only that the State Government has power to include new items in the entries in Schedule I and does not have a power to exclude. We regret this kind of construction is not possible. Section 21 of the M. P. General Clauses Act, 1957 clearly says that power of amendment includes power of exclusion and inclusion both. Section 21 of the M. P. General Clauses Act reads as under : " 21. Power to make to include power to add, amend, vary or rescind orders, etc.- Where, by any Madhya Pradesh Act, a power to issue notification, orders, rules or by-laws is conferred, then that power includes a power, exercisable in the like manner and subject to the like sanctions and conditions, if any, to add to, amend, vary or rescind any notifications, orders, rules or by-laws, so issued. " This section clearly says that where by any M. P. Act, power has been given to issue notifications, orders, rules or by-laws, then that power includes a power exercisable in the like manner and subject to the like sanctions and conditions, if any, to add to, amend, vary or rescind any notifications, orders, rules or by-laws so issued. Therefore, when the State Government has been given a power to include certain entries in Schedule I, then such power will include in it the power to exclude certain items also. Therefore, the contention raised by the learned counsel is not correct.