LexGOODYEAR INDIA LTD. ETC. ETC. versus STATE OF HARYANA & ANR. ETC. ETC.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
GOODYEAR INDIA LTD. ETC. ETC.
v.
STATE OF HARYANA & ANR. ETC. ETC.
OCTOBER 19, 1989
B
[SABYASACHI MUKHARJI AND S. RANGANATHAN, JJ.]
Haryana General Sales Tax Act, 1973: Section 9 (Prior to its
amendment by Act No. 11of1979)-Purchase Tax-Provision for levy
of purchase tax on 'Disposal' of manufactured goods-Notification-
(No. S.O J19/H.A. 20/73/Ss. 9 & 15/74 dated July 19, 1974)-Levy of
C tax on mere despatch of goods to the dealers themselves outside the
State-Validity of.
Section 9(1)(b) (As amended by Haryana General Sales Tax
(Amendment and Validation Act), 1983-Purchase Tax-Taxing of
purchase of raw material if goods manufactured therefrom despatched
D outside the State otherwise than by way of sale in the course of inter State
trade-Whether taxing of consignments in the course of inter State
trade-Whether beyond the legislative competence of State Legisla-
ture-Effect of Constitution (Forty-Sixth) Amendment Act, 1982.
Section 9( l)(c)-Purchase tax on Exports-Food Corporation of
E India-Purchase of foodgrains from farmers within the State-Des-
patch of food grains to its Branches outside the State-Levy of Tax at the
Point of Despatch-Validity of.
Section 24(3)-Validity of:
F Haryana General Sales Tax (Amendment and Validation) Act, 1983- Law
declared ultra vires State Legislature-Validating Act-No change made
in substantive law mere direction to ignore judgment-Whether void.
G
Section 5{}-Penalty-Charging provision held ultra vires-
Penalty proceedings based on charging provision whether invalid.
Bombay Sales Tax Act 1959: Section 13-AA (As inserted by
Maharashtra Act XXV/11 of 1982)-Scope, effect and validity of.
Purchase tax-Raw material purchased by paying tax used in the
manufacture of goods-Manufactured goods despatched to Agents in
other States-Levy of AdditiorfaJ-Tax-Whether tax on the consignment
H of manufactured goods outside the State-Whether beyond the legislat-
519
GOODYEAR (I) LTD. v. STATE OF HARYANA
511
tive competence of State Legislature-Whether violative of Articles 14
A
and 30 Iof the Constitution of India.
Constitution of India, 1950: Article 14-Section 13-AA of the
Bombay Sales Tax Act, 1959 (As inserted by Maharashtra Act XXVIII
of 1982)-Vires of
B
Articles 245 and 246-Doctrine of Pith and Substance-What is-
Test for determination-Legislative competence-Relevancy of pith and
substance rule.
Article 269( l)(h)-Constitution (Forty-Sixth) Amendment Act,
1982-0bject and1effect of
Article 301-Freedom of Trade Commerce and Intercourse
Bombay Sales Tax Act, 1959-Section 13-AA (As inserted ·by
Maharashtra Act XXVIII of 1982)-Vires.of-lmposlfion of Additional
purchase tax--Permissibility of
Schedule Vll-Entr:es in the Legislative Li.sts~Only demarcate
•
legislative field-Do not confer legislative powers.
Statutory Interpretation: Rules of interpretation of statutes-
applicabiiity of to interpretation of Consiitution-Constitution-Not to
be interpreted in a narrow pedantic sense.
Fiscal statutes-Tax liability-Whether can be .determined by
reference to interpretation of a statute other than the statute creating
liability-Should be construed strictly-Assumptions and presumption
in interpretation of fiscal law--Jfhether permissible.
Determination of nature of a tax-Standard or measure on which
the tax is levied-Whether relevant and conclusive-Courts whether to
look into Pith and Substance Rule.
c
D
E
F
Taxable event-Charging event-What is-Test for determina-
G
lion-What is-Stages of taxation explained.
Excise duty-Sales Tax-Distinction between-Tax on sale of
goods-Tax on use or consumption of goods-Distinction between-
Reasonable construction should be followed and literal construction to
be avoided if that defeats the manifest object and purpose of the Act.
H
A
B
c
512
SUPREME COURT REPORTS
[1989} Supp. 1 S.C.R.
Mischief Rule: Provisions of Constitutional changes-To be con-
scrCTed in the context of Mischief Rule.
Practice and Procedure: Precedenc-What is-A decision on a
question which has not been argued-Whether can be treated as
precedent.
Words and Phrases: 'Disposal'-Meaning of.
The appellant/petitioner company-Good Year India Limited-a
registered dealer both under the Haryana General Sales Tax Act, 1973
and Central Sales Tax Act, 1956, was manufacturing automobile tyres
and tubes at Ballabgarh in the State of Haryana. For the said
manufacturing activity it was purchasing various kinds of raw mate-
rials both wiExcerpt shown. Read the full judgment & AI analysis in Lexace.