- (1.) The appellant-firm are wine merchants, carrying on business at the Mall in Simla. In the auction for sale of the Indian made foreign liquor and beer held on March 31, 1967, the appellant was the highest bidder for dealing in liquor under a L-2 licence as provided in the Punjab Liquor Licence Rules as applicable to certain parts of the then Union Territory of Himachal Pradesh. The case for the appellant is that at the time of the auction, Deputy Commissioner, Simla who is also the Collector of Excise and Taxation, announced that no sales tax will be liable to be paid on the sale of the India made foreign liquor and beer but deposite this assurance the Government has levied and collected from the appellant-firm a sum of Rs. 26,798-26 P. and further it is taking steps against the firm for realising sales tax on the liquor and beer sold by it. Hence it filed a writ petition in the Delhi High Court (Himachal Pradesh Bench at Simla) seeking various reliefs. Several contentions were taken in the writ petition but at the time of the hearing only one of the reliefs prayed for in the writ petition was pressed. Many of the contentions taken in the writ petition were given up. Hence it is not necessary for us to refer to the facts relating to the other reliefs prayed for in the writ petition. The appellant pleaded that in view of the representation made by the Deputy Commissioner, it was induced to increase its bid as a result of which the Government had substantially benefited. The case for the appellant is that because of the equities of the case, the Court should issue a writ, direction or order restraining the respondents from enforcing the levy of sales tax on the sales of Indian made foreign liquor and beer at Simla.
(2.) In the counter-affidavit filed on behalf of the respondents, it was denied that the Deputy Commissioner had represented to the bidders before the auction commenced that no sales tax was liable to be paid on the sale of Indian made foreign liquor or beer. The case of the respondents is that all that the Deputy Commissioner told the bidders was that the Government was considering the question of removing sales tax on the sale of Indian made foreign liquor. In fact, the Himachal Pradesh Government took a decision to remove sales tax on sale of Indian made foreign liquor but they could not enforce that decision without approval of the Union Government; the Union Government did not accord the approval asked for; hence the Government was not able to remove the sales tax in respect of the sale of Indian made foreign liquor. It was urged on behalf of the respondents that sales tax was imposed by law. The Government cannot refuse to implement the mandate of the law. Any change in the provisions of the Punjab General Sales Tax Act could be effected only according to the provisions of the law in force. No Court can issue a mandate to a legislature or to a subordinate legislative body to make or change any law; further the Himachal Pradesh Government is incompetent to change the law without the approval of the Union Government which is not a party to the writ petition.
(3.) The first question that we have to decide it as to what was the representation made by the Deputy Commissioner at the time of the auction. As seen earlier the parties are not agreed on this joint. The relevant allegation in the writ petition is found in paragraph 3 thereof. It reads: ".... it was also announced that no sales tax would be liable to be paid on the sales of Indian made foreign liquor and beer....".;