STATE OF RAJASTHAN & ORS. versus COMBINED TRADERS

STATE OF RAJASTHAN & ORS. versus COMBINED TRADERS

Sub-rule (20) of Rule 17 of the Central Sales Tax (Rajasthan) Rules, 1957 is inconsistent with the Central Registration Rules framed under Section 13(1)(d) of the CST Act because the Central Government has the exclusive rule-making power to prescribe the form and particulars of declarations (Form C) and the State cannot, under Section 13(3), make rules cancelling declarations when the Central rules do not provide for such cancellation; accordingly the State rule is ultra vires.

Parties
Appellant: State of Rajasthan & Ors.; Respondent: Combined Traders
Jurisdiction
India
Judgment Date
16 April 2025
Procedural Posture
Civil Appeal / Appeal to Supreme Court Judgment
Outcome
Appeal dismissed
Legal Topics
Rule Making Power, Ultra Vires, Cancellation of Form C, Central Vs State Rules
Tax Law Administrative Law Constitutional Law Rule Making Power Ultra Vires Cancellation of Form C Central Vs State Rules

Case Brief

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Parties

State of Rajasthan & Ors.

Appellant

Combined Traders

Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court Judgment

Legal Issues

  1. 1 Whether sub-rule (20) of Rule 17 of the Central Sales Tax (Rajasthan) Rules, 1957 is ultra vires Sections 8(4), 13(1)(d), 13(3) and 13(4)(e) of the Central Sales Tax Act, 1956
  2. 2 Whether the State Government can, under Section 13(3), frame rules permitting cancellation of declarations in Form C that are prescribed by the Central Government under Section 13(1)(d)

Ratio Decidendi

Sub-rule (20) of Rule 17 of the Central Sales Tax (Rajasthan) Rules, 1957 is inconsistent with the Central Registration Rules framed under Section 13(1)(d) of the CST Act because the Central Government has the exclusive rule-making power to prescribe the form and particulars of declarations (Form C) and the State cannot, under Section 13(3), make rules cancelling declarations when the Central rules do not provide for such cancellation; accordingly the State rule is ultra vires.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Sub-rule (20) of Rule 17 of the Central Sales Tax (Rajasthan) Rules, 1957 is inconsistent with the Central Registration Rules framed under clause (d) of sub-section (1) of Section 13 of the Central Sales Tax Act, 1956 and is therefore ultra vires