MANGOO RAM MOHAN LAL Vs. STATE OF HARYANA

JUDGEMENT

(1.) This judgment would dispose of General Sales Tax References Nos. 7 and 8 of 1977, which involve common question of law and fact that arise for consideration from the order of reference of the Sales Tax Tribunal dated 22nd February, 1977, whereby it referred the following question for the opinion of this Court: Whether under the facts and circumstances of the present case, the provisions of Haryana General Sales Tax Act, 1973, could be made applicable in view of the fact that the assessment already stood finalised before coming into force of the new Act?

(2.) For appreciating the import of the question proposed, a few relevant facts deserve noticing at the very outset. The petitioner's assessment for the assessment years 1967-68 and 1968-69 was finalised by the Assessing Authority on 12th April, 1972 and 24th October, 1972, respectively. The Assessing Authority was of the opinion that no tax was leviable on the turnover to the extent of Rs. 46,218.11 and Rs. 61,869.00 for the respective assessment years relating to the sale of sarson sold by the petitioner-firm outside the State of Haryana on consignment basis because of the decision of this Court reported as Usha Cotton Ginning & Pressing Factory v. State of Punjab 1970 RLR 273. This Court rendered that judgment in the light of the definition of the term "dealer" as it existed in Section 2(d) of the Punjab General Sales Tax Act, 1948. Subsequent to the assessment orders, the Haryana Legislature framed its own Act known as the Haryana General Sales Tax Act of 1973 (hereinafter referred to as the Haryana Sales Tax Act), which came into operation with effect from 5th May, 1973. In Haryana Sales Tax Act the definition of "dealer" was materially changed and the legislature expressly made the same operative with retrospective effect from 7th September, 1955.

(3.) In the wake of the changed definition of the term "dealer" in the Haryana Sales Tax Act, the Deputy Excise and Taxation Commissioner (Appeals), Rohtak, suo motu initiated action under Section 40 of the Haryana Sales Tax Act against the petitioner-firm. He by his order dated 16th July, 1974, directed that the turnover of Rs. 46,218.11 for the year 1967-68 and Rs. 61,869.00 for the year 1968-69 would be treated as part of the taxable turnover and liable to tax. He, therefore, modified the orders of the Assessing Authority. His order was challenged before the Tribunal which sustained the order and dismissed the appeal.