KARNAL MACHINERY STORE Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) THIS order will dispose of Civil Writs Nos. 1552 and 2295 of 1970. They are directed against the order of the Assessing Authority, Karnal, charging sales tax at the rate of 10 percent, on the price of the "monoblock pumping sets" sold by the respective dealers with effect from 22nd August, 1968, to 31st March, 1969 and at the rate of 6 per cent, thereafter. The assessment year in Civil Writ No. 1552 (Messrs. Anil Traders, Chaura Bazar, Karnal) is 1966-67 and in Civil Writ No. 2295 of 1970 (Messrs. Karnal Machinery Store, Karnal) is 1968-69. The petitioners instead of going up in appeal to the Excise and Taxation Commissioner, Haryana and in further appeal to the Sales Tax Tribunal, Haryana, have come to this court under Article 226 of the Constitution of India. Their contention is that the "monoblock pumping sets" do not fall under item 17 in Schedule A, but fall under item 34 in Schedule B and, therefore, these pumping sets are not liable to any sales tax.

(2.) SECTION 4 of the Punjab Sales Tax Act as applicable to Haryana, provides that: Subject to the provisions of Sections 5 and 6, every dealer, except one dealing exclusively in goods declared tax-free under Section 6, whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum, shall be liable to pay tax under ' this Act on all sales effected after the coming into force of this Act.

(3.) SECTION 5 provides the rate of tax. In the case of luxury goods the extent of tax is 10 per cent. , whereas in the case of other goods, it is 6 per cent. Luxury goods have been enumerated in Schedule A, but have not been defined either in the Act or the Rules made thereunder. Section 6 deals with tax-free goods. Tax-free goods are specified in the first column of Schedule B. Section 6 enables the Government to put conditions and make exceptions with regard to tax-free goods. The Government can, after giving a notice of not less than two months, either add to or delete from Schedule B.