GOODYEAR INDIA LTD. ETC. ETC. versus STATE OF HARYANA & ANR. ETC. ETC.

GOODYEAR INDIA LTD. ETC. ETC. versus STATE OF HARYANA & ANR. ETC. ETC.

Levy of purchase tax under Section 9(1)(b),(c) of Haryana General Sales Tax Act, 1973 (as amended) upon despatch/consignment of manufactured goods to dealers’ branches outside the State amounts to a consignment tax not within State legislative competence and is ultra vires. Additional tax under Section 13-AA of...

Source-derived case information.

Parties
Appellant: Goodyear India Ltd.; Respondent: State of Haryana; Appellant: Food Corporation of India; Respondent: State of Maharashtra; Appellant: Hindustan Lever Ltd.; Appellant: Wipro Products Ltd.; Appellant: Gedore (I) Pvt. Ltd.; Appellant: Kelvinator of India Ltd.
Jurisdiction
India
Judgment Date
19 October 1989
Procedural Posture
Civil Appeals and Special Leave Petitions / Final Decision After Appeals From High Court Judgments
Outcome
Appeals and petitions disposed of; appeals allowed in respect of Haryana Act; judgment and order of High Court set aside; appeals allowed in respect of Food Corporation of India; appeals allowed in respect of Section 13-AA Bombay Act; High Court judgment set aside; penalty proceedings fail where charging provision...
Legal Topics
Legislative Competence, Sales Tax, Purchase Tax, Consignment Tax, Export Tax, Statutory Interpretation, Validity of Taxing Statutes
Constitutional Law Taxation Law Legislative Competence Sales Tax Purchase Tax Consignment Tax Export Tax Statutory Interpretation +1 more

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Summary, issues, holding and outcome

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Parties

Goodyear India Ltd.

Appellant

State of Haryana

Respondent

Food Corporation of India

Appellant

State of Maharashtra

Respondent

Hindustan Lever Ltd.

Appellant

Wipro Products Ltd.

Appellant

Gedore (I) Pvt. Ltd.

Appellant

Kelvinator of India Ltd.

Appellant

Procedural Posture

Civil Appeals and Special Leave Petitions / Final Decision After Appeals From High Court Judgments

Legal Issues

  1. 1 Whether levy of purchase tax on despatch or consignment of manufactured goods to dealers' branches outside the State is valid under the Haryana General Sales Tax Act, 1973
  2. 2 Whether Haryana General Sales Tax (Amendment and Validation) Act, 1983 is within the legislative competence of the State Legislature and valid
  3. 3 Whether Section 9(1)(b),(c) of Haryana General Sales Tax Act, 1973 (as amended) is ultra vires with respect to levy on inter-State trade, commerce, and export

Ratio Decidendi

Levy of purchase tax under Section 9(1)(b),(c) of Haryana General Sales Tax Act, 1973 (as amended) upon despatch/consignment of manufactured goods to dealers’ branches outside the State amounts to a consignment tax not within State legislative competence and is ultra vires. Additional tax under Section 13-AA of Bombay Sales Tax Act, 1959 is not violative of Article 14 or Article 301, as the incidence is only on purchase when goods are used in manufacture and despatched outside the State and does not directly impede trade. Penalty proceedings fail if based on ultra vires charging provision.

Court Disposition

Appeals and petitions disposed of; appeals allowed in respect of Haryana Act; judgment and order of High Court set aside; appeals allowed in respect of Food Corporation of India; appeals allowed in respect of Section 13-AA Bombay Act; High Court judgment set aside; penalty proceedings fail where charging provision...

Orders

  • Civil Appeals regarding Haryana Act allowed; High Court judgment and order set aside.
  • Civil Appeals regarding Food Corporation of India allowed; High Court judgment set aside.