Ultra vires compliance demands fail, while check-post transit control remains valid under binding precedent.

Section 38 of the Haryana General Sales Tax Act, 1973, and the notices enforcing its compliance requirements were treated as unenforceable because earlier binding authority had already held the provision and related rule to be beyond power; the challenge succeeded to that extent. Section 37, which provides for check-posts, barriers and inspection of goods in transit, was upheld as intra vires because the apex Court had already sustained the statutory scheme, and the related rules and forms were therefore treated as valid.

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Issues: (i) Whether section 38 of the Haryana General Sales Tax Act, 1973, as amended, and the connected requirements and notices demanding compliance thereunder were ultra vires; and (ii) whether section 37 of the Haryana General Sales Tax Act, 1973, providing for check-posts and barriers, was valid.

Issue (i): Whether section 38 of the Haryana General Sales Tax Act, 1973, as amended, and the connected requirements and notices demanding compliance thereunder were ultra vires.

Analysis: The validity of section 38 had already been settled by earlier binding authority holding the provision and the related rule to be beyond power. Once that position stood affirmed, no action could lawfully be taken to compel compliance with the requirements founded on section 38. The notices issued to enforce that provision therefore could not survive.

Conclusion: Section 38 was held to be unenforceable, and the challenge succeeded in favour of the assessee to that extent.

Issue (ii): Whether section 37 of the Haryana General Sales Tax Act, 1973, providing for check-posts and barriers, was valid.

Analysis: The provision for establishment of check-posts, barriers, and inspection of goods in transit had already been upheld by the apex Court. The Court declined to examine the wisdom of the legislative policy and treated the matter as concluded by the earlier authoritative pronouncement. The related procedural requirements under the rules and forms were therefore treated as valid.

Conclusion: Section 37 was upheld as intra vires, and the challenge failed against the assessee on this issue.

Final Conclusion: The petitions succeeded only with respect to compulsion under section 38 and the notices based on it, while the statutory scheme under section 37 for check-post control remained operative.

Ratio Decidendi: A provision already declared ultra vires cannot be enforced, whereas a statutory mechanism for transit inspection and check-post control, once upheld by binding precedent, remains valid and cannot be questioned on grounds of legislative wisdom.

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