- (1.) This order shall dispose of Civil Writ Petition Nos. 14325 of 2002 and 2794 of 1993 as identical issue has been raised in both the petitions. CWP No.2794 of 1993 has been filed by M/s M.R.F.Limited. However, facts have been extracted from CWP No.14325 of 2002.
(2.) Brief facts as narrated in CWP No.14325 of 2002 are that prior to 9.11.1990, the rate of sales tax on motor tyres/tubes was 12 paise in a rupee and 8 paise in a rupee on tractor tyres and tubes. With effect from 9.11.1990, the Punjab Government amended notification dated 2.12.1982 and introduced Clause 13 providing rate of tax on motor tyres and tubes at nine paise in a rupee till March 31, 1992. Notification dated 28.12.1990 was issued fixing the rate of sales tax on the sales of tractor tyres and tubes @ 6% upto March 1992. No fresh notification was issued after 31.3.1992. However, on 20.8.1992, the Punjab Government in exercise of powers conferred under section 5(1) of the Punjab General Sales Tax Act, 1948 (in short, "the Act") introduced amendment in the notification dated 2.12.1982 to the effect that the rate of tax on motor tyres and tubes shall be nine paise in a rupee and at the rate of six paise in a rupee on tractor tyres and tubes with effect from 1.4.1992 to 31.3.1994. Further amendment was made vide notification dated 1.12.1992, Annexure P.5 that reduced rate of sales tax on the items in question was to be effective from 20.8.1992 and not from 1.4.1992, meaning thereby the amount of tax for the period from 1.4.1992 to 20.8.1992 was to remain 12 paise in a rupee and not 9 paise in a rupee in so far as tax on motor tyres and tubes is concerned and eight paise in a rupee and not 6 paise in a rupee relating to tractor tyres and tubes. The Assessing authority vide order dated 30.8.1993 assessed the petitioner's sales at the enhanced rate of tax and created additional demand of Rs.16,97,613/-. The Deputy Excise and Taxation Commissioner (Appeals) dismissed the appeal and the second appeal before the Sales Tax Tribunal was partly allowed on 29.5.1996 as the order of penalty under Section 10(6) of the Act was quashed. Application moved by the petitioner for reference was rejected on 7.2.2002. Through the present petition, the petitioner is challenging the validity of the notification dated 1.12.1992, Annexure P.5 being ultra vires the provisions of section 5 of the Act as the State authorities cannot levy tax from retrospective date.
(3.) Learned counsel for the petitioner submitted that the Respondent-State had issued Notification No.S.O.50/P.A.46/48/S- 5/82 dated the 2 nd December, 1982 whereby rate of tax on goods specified in Schedule 'A' to the Act was to be twelve paise in a rupee on motor tyres and tubes and eight paise in a rupee on tractor tyres and tubes and according to the same, the motor tyres and tubes and tractor tyres and tubes were exigible to tax at the rate of twelve paise in a rupee and eight paise in a rupee respectively. However, vide Annexure P.1, notification No.S.O.57/P.A.4648/s.5/90 dated 9.11.1990 was issued whereby the aforesaid rate was reduced to nine paise in a rupee on motor tyres and tubes till 31.3.1992. Vide notification No. S.O.P.A.46/48/S.S./90 dated 28.12.1990, the rate was reduced to six paise in a rupee on tractor tyres and tubes. Subsequently, vide Annexure P.3, Notification No.S.O.61/P.A.46/48/S.5/Amd/92 dated 20.8.1992 was issued extending the validity period of the reduced rates for the period from 1.4.1992 to 31.3.1994. However, on 1.12.1992, the State Government issued notification No.S.O.93/P.A.46/48/S.5/Amd/92 dated 1.12.1992, Annexure P.5 whereby notification Annexure P.3 was made effective from 20.8.1992 instead of 1.4.1992. In other words, it was contended that by virtue of this, the State had sought to levy sales tax at the enhanced rate for the period from 1.4.1992 to 20.8.1992 which could not be done by retrospectively amending the notification. It was further submitted that the petitioner had acted on the basis of notification (Annexure P.3) and made the refunds of the amount collected in excess of the sales tax above 9 paise in respect of Motor tyres and tubes and 6 paise in respect of tractor tyres and tubes in a rupee to various dealers in the State of Punjab amounting to Rs.10,79,659/-.;