BHAILAL BHAI Vs. STATE OF M P

JUDGEMENT

(1.) THIS order will also govern Miscellaneous Petitions Nos. 145, 146, 147, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 158 and 160 all of 1958.

(2.) IN these sixteen applications under Article 226 of the Constitution of India, the petitioners challenge the validity of imposition of sales tax under the Madhya Bharat Sales Tax Act, 1950, on "leaves of tobacco, manufactured tobacco used for eating, smoking and for snuff and tobacco chura used for the manufacture of bidis" imported by them from outside the quondam State of Madhya Bharat and sold in that State. They pray that the imposition be declared to be illegal and ultra vires the Constitution and an appropriate writ or direction be issued to the opponents to refund the tax already collected from them during the period from 1st April, 1951, to 30th September, 1957.

(3.) ALL the petitioners carry on business in Ujjain (a city located in that part of the new Madhya Pradesh which was formely Madhya Bharat) as importers of tobacco and as such are registered as dealers under the Act. By Notification No. 59/7-S. R.-55 (5) dated the 24th October, 1953, issued by the Government under Section 5 of the Act, sales tax is chargeable on "leaves of tobacco, manufactured tobacco and tobacco used for smoking, eating and for snuff" sold by an importer at the rate of Rs. 6-4-0 per cent and on "tobacco chura used for bidi manufacturing" sold by an importer at the rate of Rs. 1-9-0 per cent. During the period relating to the assessment years from 1950 to 1956, the petitioners' sold imported as well as locally grown-that is in Madhya Bharat-tobacco of the above description. The sales tax authority assessed them to sales tax for these assessment years on the basis of taxable turnover determined after deducting from their turnover the sale of "domestic tobacco" and recovered the tax accordingly.