H K DASS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This appeal is directed against order dated 27,5.1991 passed by the learned Single Judge in Civil Writ Petition No. 7327 of 1989 rejecting the appellant's prayer for quashing notification dated 30.3.1988 issued by the Government refusing to grant/extend the benefit of concession in the matter of levy of sales tax to the appellant.

(2.) The appellant is a dealer of the Tata Diesel Vehicle. He claimed that in the year 1984 Government of India introduced a liberalisation policy with the object of saving fuel by encouraging the diesel/petrol efficient vehicle. The policy further postulated that there should be such a technological advancement in automobile vehicle which may better the carrying capacity of the vehicle and its fuel efficiency in relation to the petrol/diesel. The emphasis in the policy was to the indigenous technological advancement with or without foreign collaborators. The underlying idea of the policy was to save fuel cost because the import of fuel used to dry up the foreign exchange reserve of which the country had always felt shortage. It is further averred in the writ petition that the policy of liberalisation encouraged foreign collaborators from Japan to enter into the field in partnership with the Indian manufacturers to produce the diesel/petrol vehicles with such a technology that they were fuel efficient. In so far as medium and light commercial vehicles were concerned, the foreign collaboration was only with four manufacturers. Japan has taken the advance stride in the field of technology which created a competitive market in the country and also resulted in fuel conservation. However, the disadvantage of a vehicle manufactured in Japan or manufactured in India with Japanese collaboration used to be that it would cost more because of the maintenance and spare parts. As a result of this difficulty, instead of the import of spare parts the necessity of a local manufacturer was felt and the TATA came in the forefront in giving a tough competition to all the foreign collaborators with their Indian partners because the TATA vehicles have usually been dependent on indigenous manufacturing technology which is quite advance and it has produced light/medium commercial vehicles. As a result, the manufactures who had collaboration with foreign companies pressed before the Government of India for certain concession in order to enable them to compete with the indigenous motor vehicles including fuel efficient TATA vehicle.

(3.) On 9.12.1986, the Government of India issued a circular granting exemption to the light commercial motor vehicles which were fuel efficient. This was amended on 22.6.1987. The notification was issued under sub Rule 1 of Rule 8 of the Central Excise Rules, 1944. According to the notification, the fuel efficient light commercial motor vehicle would be that vehicle which meets a specific fuel consumption and certified accordingly by an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Industry. The officer was required to carry out the fuel efficient test as specified in the notification. This notification was further amended on 30.3.1988 and a new notification was issued under Section 5 A of the Central Excise Salt Act 1944. The appellant claimed that according to the notification issued on 9.12.1986 as amended from time to time they were issued fuel efficiency certificate in respect of their light commercial vehicle known as TATA 407. A copy of the certificate has been attached as Annexure P.3 and the same reads as under: No. 6(3)/87-AE-1 Government of India Ministry of Industry (Department of Industrial Development) New Delhi, the January, 1988 CERTIFICATE OF FUEL EFFICIENCY