BALDEV RAJ HARI KISHAN Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Petitioner is a dealer registered under the Punjab General Sales Tax Act, 1948 (for short "the Act") with the Assessing Authority, Ludhiana. The petitioner-firm is engaged in the business of purchase and sale of "mungfali" (groundnut and peanut) and "til" (sesamum ). As per Schedule c annexed to the Act, the above items are liable to purchase tax since June 18, 1980. The stage at which these items are leviable to tax has been mentioned in Schedule D annexed to the Act, according to which the oil seeds including the above items will be liable to purchase tax in the hands of the last dealer, liable to pay tax under the Act. Under section 31 of the Act the State Government is competent, by issuing a notification, to add to, or delete from Schedule C, any goods by giving 20 days notice of its intention to do so. Similarly, the State Government in exercise of its power under section 5 (3) (b) of the Act can, by issuing a necessary notification, amend Schedule D after giving 200 days notice of its intention to do so.

(2.) The Government of Punjab issued draft notification, annexure P-1 on August 13, 1998 to amend Schedule C and similarly, also issued another notification of the same date showing its intention to amend Schedule D. In both the notifications, it was mentioned that the proposed amendments will be effective from July 1, 1998. Thereafter, the Government of Punjab issued notifications, annexures P-3 and P-4, which were published in the Punjab Government Gazette on October 22, 1998, wherein it was mentioned that these will be effective from August 13, 1998. By notification published on October 22, 1998, Schedule C was amended to the effect that item 3 in the said Schedule and the entries relating thereto shall be deemed to have been omitted with effect from August 13, 1998 whereas by notification annexure P-4, published on October 22, 1998, Schedule D was amended to the effect that for the words "cotton yarn" appearing in column 2 against serial No. 3 in the said Schedule, the items appearing in item 3 and the entries relating thereto in Schedule C shall be deemed to have been substituted with effect from August 13, 1998.

(3.) In response to notice of motion, written statement has been filed by the respondents. Stand of the respondents in the reply is that State Government has complied with the provisions of sections 31 and 5 (3) (b) of the Act. The notifications were issued after it was amply made clear to the public vide notifications dated August 13, 1998 that Schedules C and D would be amended w. e. f. July 1, 1998, but keeping in view the retrospective effect in these draft notifications, the date was later on changed to August 13, 1998 and thus it is not a case of retrospective legislation.