In the case of Janpada Sabha, Chhindwar v. The Central Provinces Syndicate Ltd., 1970 3 SCR 745, the question was raised as to the validity of enhancement of cess on extraction of companyl.
The assessment orders were challenged by the petitioner by filing writ petition before the High Court.
The petition out of which this appeal arises was one of 8 group of petitions filed before the High Court.
Following that decision, the High Court allowed the writ petitions filed by the appellant and the other writ petitioners.
No Central Sales Tax companyld be levied on excise duty.
The position after the decision of this Court in the case of The State of Madras v. N.K. Nataraja Mudaliar, supra was that levy of sales tax companyld number be said to be invalid because provisions of sub sections 2 , 2A and 5 of Section 8 of the Central Sales Tax Act were ultra vires the Constitution of India.
The case of the appellant is that even after the judgment of the Madras High Court.
The ground taken was that Central Sales Tax was levied on turnover which included excise duty.
The other reason for which the assessments were set aside was inclusion of excise duty in the companyputation of turnover.
Claims for refund of the tax companylected by the Sales Tax Authority were also made.
The provisions of subsections 2 , 2A and 5 of Section 8 of the Central Sales Tax Act were ultra vires the Constitution of India.
Is, however, held that tax on excise duty was illegal and affirmed the decision of the High Court on this point.
Several other similar writ petitions were heard by the High Court along with the appellants case.
The enhanced levies were challenged in this Court.
The rate of cess originally was at 3 pies per ton This was later enhanced to 4 pies per ton, in 1946 to 7 pies and in 1947 to 9 pies.
2207 of 1982 J U D G M E N T SEN, J. The appellant is a manufacturer of safety matches.
The High Court by the judgment dated 30th January, 1968 allowed the writ petitions in the case of Larsen and Toubro v. Joint Commercial Tax Officer, 1967 20 STC 150.
With Civil Appeal No.
In Shri Prithvi Cotton Mills case supra , the assessment years involved were 1961 62, 1962 63 and 1963 64.
The Sales Tax Authority did number prefer any appeal in the case of the appellant, but went up in appeal in another case The State of Madras v. N.K. Nataraja Mudaliar, AIR 1969 SC 147 in which this Court held that the provisions of sub sections 2 , 2A and 5 of Section 8 of the Central Sales Tax Act were valid.
During the period relevant For the assessment years 1957 58 to 1965 66, the appellant sold matches in the companyrse of inter State trade and companymerce for which sales tax was charged under the Central Sales Tax Act.
Against orders passed in favour of the other assessees the State has number preferred appeals.
the Commercial Tax Officer did number refund the amount of tax illegally companylected even though specific direction had been given by the High Court to that effect.
The field is number occupied by the judgment of this Court in N.K. Natraja Mudaliars case supra and the provisions of the Central Sales Tax Act as amended by the Act of 1969.
