MONGA RICE MILL Vs. STATE OF HARYANA

JUDGEMENT

(1.) Is the paddy purchased by a miller who sells the rice to the exporter not exigible to the levy of purchase tax This is the primary question that arises for consideration in this bunch of 53 writ petitions. C.W.P. No. 4379 of 1999 involving this issue had been admitted by a Bench of this Court. It was on the daily Board of this Bench. The remaining 52 petitions were listed for preliminary hearing on July 31, 2001. Counsel for the parties made a request that all the petitions be heard and disposed of together. Consequently, we have heard these petitions. Learned counsel for the parties have referred to the facts in C.W.P. No. 8532 of 2000. These may be briefly noticed.

(2.) The petitioner has a sheller. It purchases paddy, processes it and sells rice. Herein, we are concerned with the sale of rice to an exporter who sold it to a foreign buyer. The petitioner claims that in view of the provisions of Article 286 of the Constitution and Sections 5 and 15(ca) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the 1956 Act"), the State cannot levy purchase tax on the paddy purchased by it for sale of rice to the exporter.

(3.) The petitioner filed sales tax returns for four assessment years, viz., 1996-97 to 1999-2000 in accordance with the provisions of Section 25 of the Haryana General Sales Tax Act, 1973 (hereinafter referred to as "the 1973 Act"). It deposited the tax which fell due in accordance with the return. The petitioner claimed that no purchase tax was leviable on the paddy which was shelled to fulfil the contract of sale of rice by the exporter to the foreign buyer. This claim was made on the basis of the provisions of Section 15(ca) and Section 5 of the Central Sales Tax Act, 1956.