UNION OF INDIA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THESE writ petitions are being disposed of by this common order as the point involved is common in all these matters.

(2.) THE petitioner, i. e. , Northern Railway placed orders for purchase of wagons with Central India Machinery Mfg. Company Ltd. Bharatpur. THE seller has charged 7% sales-tax on the sales so effected but shown to sale as 5% in return. A provisional assessment was made on 28. 5. 1973 of such sales for part of the year of 1972-73 under Section 7-B of Rajasthan Sales Tax Act on the ground that Notification No. F. 84/fd/ct/72-18 dated 22. 12. 1972 is not applicable to the petitioner since the wagons are not required for official use. THE matter was challenged before the Appellate Authority and then before the Board of Revenue and the case was remanded by the Board of Revenue on 17. 9. 1980 to make the assessment and to accept D-Form if they are found in order as per Notification dated 22. 12. 1972 referred to above with observation that the observation of lower authorities with regard to use was not correct.

(3.) THE submissions of Mr. Singhi are as under: - (a) That the notification dated 7. 1. 1989 which has inserted two provisos for the period 22. 12. 1972 to 17. 6. 1975 is ultravires the power conferred under Sec. 4 (2) of the Rajasthan Sales Tax Act, (b) that the assessing authority while finalising the assessment of the seller if has come to the conclusion that the tax is payable at a concessional rate on account of furnishing the declaration form and refund is also due on account thereof, then when an application for refund is made, the provisions of Section 23-B does not permit to reinvestigate the validity of the form issued by the purchaser, (c) Proceedings under Section 16 (l) (k) cannot be initiated when a refund is claimed by the purchaser.