S.S.SANDHAWALIA,J. - (1.) THE primary and indeed the sole challenge herein is directed against the constitutional validity of Schedule D of the Punjab General Sales Tax Act, 1948, as made applicable to the State of Haryana vide Haryana Amendment and Validation Act (President's Act No. 14 of 1967) on 14th November, 1967. The facts, therefore, deserve recapitulation only with relevance to the issue aforesaid.
(2.) M /s. Ram Rattan Dass Mohan Lai of Dabwali, District Hissar, claim mainly to carry on the business of unginned cotton and after ginning the same to sell it in the form of ginned cotton and cotton seed. It is averred that the goods aforesaid are liable to tax at the stage specified in Schedule D aforesaid read with Sections 14 and 15 of the Central Sales Tax Act, 1956. The petitioners filed returns for the year 1967-68 with the Assessing Authority, Sirsa, District Hissar, but the assessment framed by the aforesaid authority was later quashed in appeal and the matter was remanded for redetermination. By his order dated 6th December, 1973 (annexure A to the petition), the Assessing Authority assessed the total tax liability of the petitioners at the figure of Rs. 22,354. 33. Included therein is the tax leviable on them under Schedule D as the first purchasers of cotton. The primary grievance of the petitioners now is that the aforesaid assessment as first purchasers leads to double taxation of the same commodity at more than one stage of declared goods which is barred by the provisions of Section 15 of the Central Sales Tax Act, 1956, and Article 286 (3) of the Constitution. On these premises, the petitioners assail the validity of Schedule D on the ground that it inevitably leads to double taxation which is prohibited by law.
(3.) IN the context of the only argument raised in the present case, the controversy inevitably revolves around the relevant statutory provisions. Some aspects of the legal position, however, are not at all in doubt. Clause (3) of Article 286 of the Constitution lays down that with regard to any tax on the sale or purchase of goods declared by Parliament to be;