BHAGWATI CONSTRUCTION COMPANY Vs. STATE OF M P

JUDGEMENT

(1.) THE petitioner by this writ petition, has prayed that he is not liable to pay tax as he did not carry out any business of sale of goods and he was merely a contractor for collection of royalty. It is also prayed that the order dated November 2, 1988 (annexure K) and communication by order dated November 5, 1988 (annexure L) may be quashed and also the second proviso to section 39 (1) of the M. P. General Sales Tax Act, 1958, may be declared as unconstitutional.

(2.) THE brief facts which are necessary for disposal of the writ petition are that the petitioner is a partnership-firm and is carrying on the business of collection of royalty under an agreement with the State of M. P. The Sales Tax Officer, Circle I, Neemach/respondent No. 3 determined the liability of the petitioner to pay sales tax with effect from December 11, 1981, by order dated November 5, 1988. This was passed in the order-sheet. A copy of the order passed in order-sheet has been placed on record as annexure K and after completion of the proceedings, order was passed on November 5, 1988 (annexure L ). Both these orders are under challenge in this petition. Along with the aforesaid orders, the petitioner has also challenged the validity of second proviso to sub-section (1) of section 39 of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act") which provides that no revision shall lie against the order determining the liability of a dealer to pay tax or against a notice issued under this Act for assessment except after the assessment order is passed.

(3.) THE petition was contested by the respondents without filing any reply.