- (1.) The petitioner before us in Messrs Gandhi General Stores (hereinafter referred to as the firm), a firm carrying on the business of selling, inter alia, monoblock pumping sets at Narnaul. For the years ending the 31st of March, 1968 and 31st of March, 1969, the firm was assessed to sales tax in the case of sales of such pumping sets at the rate of 10 paise in a rupee. The levy was challenged by the firm in proceedings which culminated in an order of this Court holding that the rate of tax could not exceed 6 per cent. Accordingly refunds to the extent of 4 per cent were allowed by the Sales Tax authorities.
(2.) On the 5th May, 1973, came into force the Haryana General Sales Tax Act, 1973 (hereinafter called the Act) of which Section 15(2) runs thus : "Notwithstanding anything contained in this Act, there shall be levied, charged and paid on the taxable turnover of a dealer a tax at the rate of ten paise in a rupee in the case of monoblock pumping sets for the period from the 1st September, 1966 to the 31st December, 1967." The Sales Tax authorities, Banking on this provision, made a demand that the firm pay back to them the entire money which had been refunded to them in consequence of the order of this Court mentioned above. It is that demand which is challenged in this petition under Articles 226 and 227 of the Constitution of India.
(3.) According to Mr. Anand Swaroop, learned counsel for the firm, the Sales Tax authorities have no business to charge the firm Sales Tax at the rates specified in Sub-section (2) of Section 15 of the Act for the two years in question. His argument is two-fold : (a) The clause "notwithstanding anything contained in this Act" refers only to such provisions of the Act as specify a rate of tax and are concerned with the levying, charging and paying thereof so that other provisions of the Act remain fully operative inspite of this clause. (b) Section 31 of the Act bars a re-assessment of sales tax in case of all assessees after a period of 5 years from the close of the year to which the assessment relates and that section overrides Sub-section (2) of Section 15.;