R. Karania wala, Mrs. Manik Karanjawala, A.S. Bhasme and A.M. Khanwil kar for the Appearing Parties.
The following Judgments of the Court were delivered SABYASACHI MUKHARJI, J. Except civil appeals Nos.
The finished products, namely, vanaspati manufactured by the appellant used to be despatched to their various marketing depots in the State of Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, P., Tamil Nadu and Kerala etc.
Dismissing the petitions of the appellants the High Court held that i three different phases are companytemplated in section 13 AA of the Act, namely, the initial purchase of the raw material, the companysumption thereof in the manufacture of taxable goods, and the despatch of the manufactured goods outside the State.
They also used to purchase VNE oils and other raw materials and paid 4 tax by way of purchase tax under section 3 of the Bombay Sales Tax Act, 1959 hereinaf ter called the Bombay Act .
416263 of 1988, in these appeals along with the special leave petitions and the writ petition, we are companycerned with Sections 9 1 and 24 3 as well as the penalty proceedings initiated under Section 50 of the Haryana General Sales Tax Act, 1974 hereinafter referred to as the Act .
Goodyear India also filed writ petition No.
According to the Full Bench, the taxing event is the act of purchase and number the Act of despatch or company signment as held in Bata India Ltd., supra .
So far as civil appeals Nos.
The appellants filed writ petitions.
In respect of the assessment years 1976 77 to 1979 80.
Subsequently, the relevant revenue authorities sought to impose purchase tax under Section 9 1 of the Act and imposed purchase tax on despatches of manufactured goods, namely, tyres and tubes, to its various depots in other States.
During the pendency of the special leave petitions, show cause numberices were issued by the assessing authority in respect of the assessment years 1973 74 to 1980 81 except for 1978 79 1979 80 and also for 1982 83 asking the petitioner to show cause why in addition to purchase tax, it should number be liable to penalty as well.
Since the appellants had a wide net of distribution of their products all over India, they appointed 40 and more clearing and forwarding agents in the companyntry.
3834 of 1985 in respect of the assessment year 1981 82, as the numberices for assessment and penalty were received after the decision of Punjab Haryana High Court in Des Raj Pushap Kumars case supra .
4 162 63 of 1988 are companycerned, these involve the scope, effect and validity of Section 13AA of the Bombay Sales Tax Act.
1166 72/85.
97 of List I. The High Court was of the view that neither the original purchase of goods number the manufacture thereof into the end product by itself attracts purchase tax and companysequently are number even remotely the taxable events.
The High Court, further, was of the opinion that a manufacturer who purchases raw material at a companycessional rate on the strength of declaration in Form 15 cannot transfer the goods manufactured out of such raw material outside the State.
9 and 15/74 dated the 19th July, 1974.
XXVIII of 1982.
From the Judgment and Order dated 24.1.85 of the Punjab Haryana High Court in C.W.P. Nos.
These are special leave petitions Nos.
8397 to 8402 of 1983.
Raja Ram Aggarwal, B. Sen, Dr. Devi Paul, D.S. Tawatia, Soli J. Sorabjee, Kapil Sibal and S.K. Dholakia, A.N. Haka sar, D.N. Misra, Mukul Mudgal, Ravinder Narain, P.K. Ram, S. Sukumaran, S. Ganesh, Mahabir Singh, H.S. Anand.
The appellant petitioner Goodyear India Ltd., was engaged at all relevant times, inter alia, in the manufac ture and sale of automobile tyres and tubes.
1959 hereinafter referred to as the Bombay Act as introduced by the Maharashtra Act No.
These appeals are by Hindustan Lever Ltd. and Wipro Products the appellants herein.
The said decision was passed in appeal against the decision of the said companyrt in Goodyear India reported in 53 STC 163, number being 1514 NT of 1984.
On July 1, 1981 the rate of purchase tax payable on VNE oils falling under Schedule C, part I at Entry 35 purchased within the State of Maharash tra from number registered dealers increased from 3 to 4, by the Maharashtra Act 32 of 1981.
The appellant was a regis tered dealer both under the Haryana Act and the Central Sales Tax Act, and had been submitting its quarterly returns and paying the sales tax in accordance with law, according to the appellant.
The petitioner Company filed special leave petitions against the aforesaid judgment of the Punjab Haryana High Court which were admitted in Civil Appeals Nos.
It was stated that at the relevant time the local sales including sales in the companyrse of inter State trade companymerce and in the companyrse of export from the State of Haryana was about 30 to 35.
The appellants, at all material times, manufacture, make and deal in vanaspati, soaps, etc.,
The High Court referred to the relevant portion of unamended Section 9 of the Act with which it was companyfronted and the numberification.
It is stated that about 7 to 10 of the total needs of raw materials on an all India basis were locally procured by the appellant from Haryana itself.
An order was passed by the Bombay High Court on July 19, 1988 in respect of these two writ petitions by the Wipro Products as well as Hindustan Lever Ltd. The decision of the High Court is reported in 1989 72 STC 69.
It manufactured the said tyres and tubes at its factory at Ballabhgarh in the district of Faridabad in the State of Haryana.
For the said manufacturing activity the appellant had, from time to time, to purchase various kinds of raw materials both within the State and outside the State.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
Section 13 AA was introduced into the Act providing for levy of 2 additional purchase tax on the purchase of goods, input goods, specified in part I of the Schedule from a number registered dealer if such goods were used in the manu facture of taxable goods within Maharashtra and thereafter the manufactured goods were transferred outside Maharashtra in the manner indicated in the said section.
1166 72 of 1985 etc.
This led to the filing of various writ petitions in the Punjab Haryana High Court by the appellant petitioner.
The raw materials purchased in Haryana were i pigments partly , ii chemicals partly , iii wires partly , iv carbon black partly , v rubber partly , and vi fabric partly .
If the goods purchased remain in the same form within the State, the question of levying additional tax would number arise.
The appellant used to despatch the goods so manufactured from their factory to the clearing and forwarding agents.
In the prem ises, it was held that section 9 1 b as amended, was neither invalid number ultra vires and overruled the decision of Bata India Ltd. The writ petitions filed were also dis missed.
chemicals and agro chemicals, and they used to purchase various types of VNE oils for their manufacture of vanaspati, soaps and other products.
In 1979, the assessing authority, Farida bad, imposed upon the appellant the purchase tax under Sec tion 9 of the Act for the assessment year 1973 74 and subse quently for the years 1974 75 and 1975 76 as well on the despatches made by the appellant on the manufactured goods to its various depots outside the State.
The rest of the requirements were imported from other States.
The appellant had a factory at Amalnar in Jalgaon district in the State of Maharashtra wherein it uses number essential oil purchased by it for the manufacture and transport.
The appellant had its depots at different places in the State of Haryana as well as in other States.
The issue involved in both the appeals is the company stitutional validity and legality of the provisions of section 13 AA of the Act, which was introduced into the Act by the Maharashtra Act XXVIII of 1982.
The relevant numberification was as follows Notification No.
The petitioner Company again filed writ petitions in Punjab Haryana High Court chal lenging the validity of those numberices.
ST 15.
It appears that in the meantime, a Full Bench of the High Court decided the question again in the case of Des Raj Pushap Kumar Gulati v. The State of Punjab Anr This decision was rendered on January 24, 1985, and is reported in 58 STC The assessment years involved in all appeals are 1973 74 to 1982 83.
After manufacturing the said tyres and tubes, about 10 to 12 of the total manufactured products used to be sold in the State of Haryana either locally or in the companyrse of inter State trade companymerce or in the companyrse of export outside the companyntry and also sold locally against Declara tion Form No.
698 to 703 and 733 of 1984.
