MADAN LAL Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) In this writ petition, the constitutionality of Section 5 -A of the Himachal Pradesh Genera! Sales Tax Act, 1968, as it stood prior to 1.8.1992, was challenged by the petitioner, a registered dealer under the Himachal Pradesh Sales Tax Act dealing in kariana, foodgrains, forest produce, cloth, sugar, onion, potato, etc. In respect of assessment years 1988 -89 and 1989 -90 on the alleged sales made on consignment basis, purchase tax was levied under Section 5 -A by the Assessing Authority. It is not in dispute that the assessment orders are not carried in appeal to the Appellate Authority.

(2.) Section 5 -A, as it stood at the relevant time, is in the following terms: "5 -A. Levy of purchase tax on certain goods. Where a dealer who is liable to pay tax under this Act purchases any goods other than those specified in Schedule "B" from any source, and - (i) uses them within the State in the manufacture of goods specified in Schedule "ET, or (ii) uses them within the State in the manufacture of any goods other than those specified in Schedule B" and sends the goods so manufactured outside the State in any manner other than by way of sale in the course of inter -State trade or commerce or in the course of export, out of the territory of India, or (iii) uses such goods for a purpose other than that of resale within the State or sale in the course of inter -State trade or commerce or in the course of export out of the territory of India, or (iv) sends them outside the State in any manner other than by way of sale in the course of inter -State trade or commerce or in the course of export out of the territory of India, and no tax is payable on the purchase of such goods under any other provisions of this Act, there shall be levied a tax on the purchase of such goods at such rate not exceeding the rate specified under Sub -section (1) of Section 6 as the State Government may direct."

(3.) Mr. D.D. Sood, learned Counsel for the petitioner says that the purchases were effected by the petitioner only for the purpose of transporting the same Ion consignment basis to destinations outside the State of Himachal Pradesh and, therefore, the same are not liable to tax under Section 5 -A.