HIMACHAL FLOUR MILLS Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) THE petitioner herein is Himachal Pradesh Flour Mills, Kangra. It owns a roller flour mill and is manufacturing, inter alia, wheat flour. The grievance made by the petitioner in this writ petition is that on account of the declaration of wheat as article of special importance in inter-State trade under section 14 of the Central Sales Tax Act, the said article does not earn deduction under sub-clause (ii) of section 6 (3) of the Himachal Pradesh General Sales Tax Act, 1968. The contention of the petitioner is that by the declaration of wheat as declared goods under section 14 of the Central Sales Tax Act, Schedule D, which is attached to the Himachal Pradesh General Sales Tax Act, stands automatically amended with the result that deduction which was contemplated by clause (ii) of section 6 (3) of the Himachal Pradesh Act is lost to the petitioner. According to the petitioner, therefore, this automatic addition of an article in Schedule D results in abdication of the legislative powers of the State Legislature and, therefore, the same is illegal.

(2.) IN order to appreciate the above contention of the petitioner it would be necessary to state shortly some facts which constitute the background of this dispute.

(3.) THE remaining portion of this clause (ii) of sub-section (3) is not relevant for out purpose. It is evident that, according to the above provisions, goods specified in the certificate of registration for use by a dealer in manufacture for sale in Himachal Pradesh were allowed for the purpose of deduction. The petitioner manufactures flour from wheat and, therefore, wheat which was used by him in manufacture of flour in Himachal Pradesh for sale was allowable for deduction under the above referred clause. But this was subject to the condition that wheat should not fall within either Schedule C or Schedule D attached to the Act. If a reference is made to Schedule D, it will be found that it is with reference to the goods which are declared under section 14 of the Central Sales Tax Act, 1956. When this Himachal Pradesh General Sales Tax Act, 1968, was passed, wheat was not an article covered by Schedule D and, therefore, the petitioner was entitled to the deduction contemplated by the above referred clause (ii) of section 6 (3) of the Act.