- (1.) Leave granted.
(2.) The appellants in these appeals are manufacturers of cement and they have their manufacturing units/factories in the State of Gujarat. The cement manufactured by them is sold throughout India through a network of stockists and dealers. They filed Civil Writ Petition Nos. 656, 788, 803, 2644 and 2645 of 1994 in the High Court of Rajasthan challenging the Notifications dated 8-1-1990, 27-6-1990 and 7-3-1994 issued by the State of Rajasthan under S. 8(5) of the Central Sales Tax Act (for short 'CST Act'). The High Court dismissed those writ petitions. Therefore, the appellants have filed these appeals.
(3.) Prior to the issuance of the impugned Notifications the rate of tax payable under S. 5 of the Rajasthan Sales Tax Act on sales of cement was 16%. Even in respect of the inter-State sales of cement to unregistered dealers the rate of tax was 16%. By the Notification dated 8-1-90 the State of Rajasthan in exercise of the powers conferred by sub-sec. (5) of S. 8 of the CST Act directed that the tax payable under sub-secs. (1) and (2) of S. 8 by any dealer having his place of business in the State, in respect of the sale by him, from any such place of business in the course of inter-State trade and commerce, of cement, to any Central or State Government Undertaking or Corporation or an Autonomous Body under the Government shall be calculated at the rate of 7%. By the second Notification dated 27-6-90 the State of Rajasthan directed that the tax payable by any such dealer to any/all dealers or any person situated outside the State of Rajasthan shall be taxed at the rate of 7%, if the conditions specified therein were satisfied. The said conditions were : "(i) The selling dealer shall submit the certificate appended hereto duly filled in and signed by him to his assessing authority within 10 days from the date of delivery of such cement to the carrier. (ii) The selling dealer shall also enclose with the said certificate, the attested photostat copy of the Railway receipt/Goods receipt, as the case may be. (iii) In case the goods are being carried through road transport, a copy of the said certificate shall also be handed over at the exit check-post of the State of Rajasthan. CERTIFICATE I/We . . . . .. . . . . . . . . . . (name of the firm/company/other status) having Registration No............... (RST Act/CST Act) ................ under the jurisdiction of the Assessing Authority . . . . . . . . . . . . . . certify that . . . . . . . . . . .bags of cement amounting to Rs. . . . . . . . . . . . . . covered by the Challan/cash memo(s) No. and the date . . . . . . . . . . . . . have been manufactured by me/us and are despatched in the course of inter-State trade and commerce vide RR/GR No. . . . . . . . . . . (Specify the number with date) . . . . . . . . . . . . to Shri/M/S . . . . . . . . . . . . . . (full address of the purchaser) Signature . . . . . . . . . Name .............. Designation . . . . . . . . . . . . Seal . . . . . . . . . . Dated. .. . . . . . . . . . .";