MULJI BHAI MATHUR BHAI AND SONS Vs. STATE

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution The petitioner is a firm dealing in tobacco. Before the passing of the Tobacco Vend Fees Act the petitioners held a certificate of registration under the Punjab General Sales lax Ad; for the sale of manufactured tobacco. With the coming into force of the Tobacco Vend Fees Act the petitioners held a certificate of registration under the Punjab General Sales Tax Act for the sale of manufactured tobacco. With the coming into force of the tobacco Vend Fees Act the petitioners made an enquiry whether they were liable to pay tax under the General Sales Tax Act. They were informed in the beginning of September 1954, that no sales tax was payable in respect of sales of manufactured tobacco during the year, 1954-55, The petitioners were also informed that they would be required to take out a tobacco dealer's licence under the New Punjab Tobacco Vend Fees Act.

(2.) MANUFACTURED tobacco figured in the Schedule to the Punjab General Sales lax Act and was therefore liable to sales tax. On the 27th September, 1954, a, notification was issued by the punjab Government deleting manufactured tobacco from the Schedule. So after 27th September, 1954, no the sales tax was payable on the sale of manufactured tobacco.

(3.) THE question now arose what was the position between 1st April, 1954, and 27th September, 1954. No. rules had been framed under the Punjab Tobacco Vend Fees Act and so no licences were issued. The Punjab Government decided that since manufactured tobacco figured in the schedule of the Punjab Sales Tax Act and the Tobacco Vend Fees Act did not have the effect of repealing this Schedule, all vendors of manufactured tobacco were liable to pay sales tax on sales effected up to 27th September, 1954.