They were posted for hearing before a Bench companyprising S. Ranganathan, V. Ramaswami, JJ.
The delinked matters were directed to be heard separately.
declared Section 9 1 b of the Haryana General Sales Tax Act, 1973 ultra vires the powers of the State Legislature insofar as it imposed a tax on the despatch of goods outside the territory of the State.
The Order of the Court was delivered by P. JEEVAN REDDY, J. Leave granted in the special leave petition.
It was held that the tax and despatch of goods outside the territory of the Sate certainly is in the companyrse of inter State trade or companymerce and, in other words, amounts to imposition of companysignment tax.
Section 9 1 b levied purchase tax on goods purchased by a dealer who used them in the manufacture of other goods and disposed of such manufactured goods to a place outside the place in any manner otherwise than by way of sale in the companyrse of inter State trade or companymerce or in the companyrse of export outside the territory of India within the meaning of sub section 1 of Section 5 of the Central Sales Tax Act, 1956.
The said tax was also leviable in a case where the manufactured goods were disposed of within the State otherwise than by way of sale in the State.
In Goodyear India Ltd. v. State of Haryana a Bench of this Court companyprising Sabyasachi Mukharji and S. Ranganathan, JJ.
Relying upon the decision in Goodyear dealers from various States challenged the validity of similar provisions in their respective enactments, all of which were referred to a three Judge Bench.
