GOVERNMENT MEDICAL STORE DEPOT Vs. STATE OF HARYANA

JUDGEMENT

(1.) THESE are five writ petitions. They are Civil Writs Nos. 1183 and 1184 of 1970 and 1795 to 1797 of 1970. All of them have been filed by Government Medical store Depot, Karnal against the State of Haryana and Excise and Taxation Officer, karnal. The writ petitions embody identical questions of facts and there arise common questions of law in them.

(2.) IN the writ petitions, it is stated that the petitioner depot is one of the six depots being run in the country by the Medical Stores Organization. The other depots are at Madras, Bombay, Calcutta, Hyderabad and Gohati. The organization functions under the control of Directorate General of Health Services, Ministry of health, Government of India. It is admitted that the depot is a department of the government of India. It is also stated in the petitions that the petitioner depot is engaged in the work of meeting the demands for medical stores of the government and the semi-Government hospitals and does not carry on any business of sale of medical goods as such. It is added that supply of medical stores by the depot to its constituents does not involve any commercial activity and is only on 'no profit, no loss basis'. It is contended on the basis of these facts that the petitioner depot could not be registered as a 'dealer' under Section 7 of the Punjab General Sales tax Act, 1948 as extended to the State of Haryana, hereinafter called 'the Act' and consequently the petitioner is not liable to be assessed for levy of sales tax.

(3.) THE State of Haryana and the Excise and Taxation Officer on the other hand asserted that the petitioner is a dealer liable to registration under Section 7 of the act and can be proceeded against for assessment of sales tax on the sale proceeds of the medical stores sold by the petitioner for the price received.