Automatic inclusion of declared goods in the State sales tax schedule was upheld as no abdication of legislative power.

Automatic inclusion of wheat in Schedule D of the Himachal Pradesh General Sales Tax Act, 1968, on its declaration as declared goods under section 14 of the Central Sales Tax Act, 1956, was not an abdication of legislative power. The State Legislature had itself fixed the policy that declared goods would not qualify for deduction under section 6(3)(ii), while leaving only the identification of such goods to the Central Legislature. That framework was treated as a complete enactment, and section 43 was held inapplicable because the inclusion operated by force of the Central declaration rather than by State notification. The denial of deduction on wheat was therefore upheld.

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Issues: Whether the automatic inclusion of wheat in Schedule D of the Himachal Pradesh General Sales Tax Act, 1968, on its declaration as declared goods under section 14 of the Central Sales Tax Act, 1956, amounted to abdication of legislative power and nullified the denial of deduction under section 6(3)(ii) of the State Act.

Analysis: The deduction under section 6(3)(ii) was available only so long as the goods were not covered by Schedule D. Once wheat became declared goods under section 14 of the Central Sales Tax Act, 1956, it fell within the general entry in Schedule D relating to all other declared goods. The legislative scheme showed that the State Legislature had itself laid down the policy that declared goods would not qualify for the deduction, while leaving the identification of such goods to the Central Legislature, which alone could declare goods of special importance in inter-State trade. This was not a surrender of the State's legislative function. The State Act remained a complete enactment, and section 43 was held to be inapplicable because the inclusion operated by force of the Central declaration and not by State notification.

Conclusion: The challenge based on abdication of legislative power failed, and the denial of deduction on wheat was upheld.

Final Conclusion: The writ petition was rejected, and the State's treatment of wheat as falling within Schedule D was sustained.

Ratio Decidendi: Where a statute itself formulates the governing policy and makes its operation dependent on a declaration by a competent external authority, the resulting automatic application of that policy does not amount to abdication of legislative power.

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