BALWANT RAI KAUSHAL Vs. STATE OF HARYANA

JUDGEMENT

(1.) M /s. Balwant Rai Kaushal was carrying on business of manufacturing bricks in the State of Haryana since January, 1986 and was registered under the Haryana General Sales Tax Act, 1973 (hereinafter called "the Act' ). It is pleaded that it closed the brick-kiln from 19th June, 1987 as the clay of the area was not fit for making bricks, and applied for cancellation of the registration certificate.

(2.) THE dealer received order from the Assessing Authority dated September 30, 1988, annexure P2, imposing sales tax, interest on the amount not paid up to September 30, 1988 and penalty. The tax was imposed not on the basis of returns filed by the assessee but on the basis of the notification dated 19th October, 1988, copy of which is annexure P1, by which the Haryana General Sales Tax Rules, 1975, framed under the Act (for short "the Rules'), were amended and Chapter 5-A was inserted, whereunder rule 39-A (1) provided for payment of lump sum amount in lieu of sales tax with reference to section 26 of the Act.

(3.) THE argument raised is that section 26 (1) of the Act does not give guideline nor gives the limit for charging lump sum amount in lieu of sales tax, and, therefore, is vague and arbitrary, and deserves to be struck down. In order to appreciate the argument the provisions of section 26 (1) to (3) are reproduced hereunder :