SUMER CHAND SUDHIR KUMAR Vs. STATE OF HARYANA

JUDGEMENT

(1.) This petition challenges the order dated July 14, 2005 (annexure P4), rejecting the application of the petitioner dated July 14, 2005 seeking to out of the lumpsum scheme of payment of tax, on the ground that tax on plywood and plyboard has been revised from 12 per cent to 12.5 per cent with effect from July 1, 2005 vide notification dated June 30, 2005.

(2.) Case of the petitioner is that under Section 9 of the Haryana Value Added Tax Act, 2003 (for short, "the Act"), the State Government is empowered to accept from any class of dealers, a lumpsum payment linked with production capacity or some other suitable measure of extent of business, calculated at a flat rate of gross receipts of business or otherwise, as provided for under the Rules framed for the purpose, in lieu of tax payable under the Act. In accordance with the said provision, under rule 51 of the Haryana Value Added Tax Rules, 2003 (for short, "the Rules"), lumpsum scheme was introduced in respect of plywood manufacturers. Rule 46 of the Rules contains general provisions in respect of lumpsum dealers and Clause (3) thereof, provides that once an option to pay lumpsum has been exercised, the same shall not be withdrawn unless the rate of lumpsum tax or rate of tax on commodity concerned is revised.

(3.) The petitioner applied to opt out of the lumpsum scheme on the ground that rate of tax has been revised from 12 per cent to 12.5 per cent and the said application was rejected on the ground that the petitioner was not prejudiced by the revision of rates of tax. Section 9 of the Act, is reproduced as under: