DUGAR TEA INDUSTRIES PVT LTD Vs. STATE OF ASSAM

JUDGEMENT

(1.) The above mentioned batch of writ petitions are disposed of by this common judgment. The petitioners have challenged the validity of the Notification No. FTX. 60/93/Pt/44 dated 13.12.93 issued by the Government of Assam. The writ petitioners are all dealers in tea and registered under the Assam General Sales Tax Act, 1993 as well as the Central Sales Tax Act, 1956. They used to purchase tea from the tea brokers as well as from the ten gardens and they are aggrieved by the impugned notification dated 13.12.93, whereby a tax was made payable by the brokers at the rate of two paise in the rupee. The impugned notification reads as follows:- <FRM>JUDGEMENT_450_GAULT1_2003Html1.htm</FRM>

(2.) The impugned notification has been challenged on the following counts:- (1) Clause (3) of Section 9 of the Assam General Sales Tax Act, for short, the Act, does not provide for levying of tax. It is for providing exemption only. (2) The impugned notification violates the provisions of Article 14 of the Constitution. (3) It can not be given retrospective effect.

(3.) The sales tax on sale of tea is leviable under the Act at the point of last sale within the State and as per Schedule-3 of the Act, the tax is at the rate of 8 paise in the rupee. Vide impugned notification, the sales tax has been made payable by the brokers on the purchase of tea except the Orthodox tea from the auction sale at Guwahati. The brokers on the other hand, have passed on this burden to the petitioners. The said brokers have been made parties in these writ petitions; but it may be mentioned that none of the brokers who were made to pay the tax by the impugned notification have come forward to challenge the same.