GANDHI GENERAL STORES Vs. STATE OF HARYANA

JUDGEMENT

(1.) The petitioner before us in Messrs Gandhi General Stores (hereinafter referred to as the firm), a firm carrying on the business of selling, inter alia, monoblock pumping sets at Narnaul. For the years ending the 31st of March, 1968 and 31st of March, 1969, the firm was assessed to sales tax in the case of sales of such pumping sets at the rate of 10 paise in a rupee. The levy was challenged by the firm in proceedings which culminated in an order of this Court holding that the rate of tax could not exceed 6 per cent. Accordingly refunds to the extent of 4 per cent were allowed by the Sales Tax authorities.

(2.) On the 5th May, 1973, came into force the Haryana General Sales Tax Act, 1973 (hereinafter called the Act) of which Section 15(2) runs thus :

(3.) According to Mr. Anand Swaroop, learned counsel for the firm, the Sales Tax authorities have no business to charge the firm Sales Tax at the rates specified in Sub-section (2) of Section 15 of the Act for the two years in question. His argument is two-fold :