Sales tax collection agreement challenge rejected where no mining lease was required and contractual liability remained enforceable.

A challenge to a sales tax collection agreement and consequential demand notice failed because no mining lease was required for excavation of bajri, the agreement did not exempt liability merely because no mining lease had been granted, and the record showed actual recovery under the agreement through receipts and an employee statement. The Tribunal also noted concealment of material facts, which weighed against discretionary writ relief. On those facts, interference in the contractual arrangement was not warranted, and the writ petition was dismissed.

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Issues: Challenge to the agreement for collection of sales tax under section 22AAA of the Rajasthan Sales Tax Act, 1954 and the consequential demand notice on the grounds that no mining lease had been granted and that the writ court should interfere in a contractual matter.

Analysis: The petition was transferred to the Tribunal under section 15 of the Rajasthan Taxation Tribunal Act, 1995. The challenge failed because no mining lease was required for excavation of bajri, the agreement did not exempt the petitioner from liability if no mining lease was granted, and the record showed actual recovery of amounts under the agreement through receipts and the employee's statement. The petitioner had also concealed material facts, which weighed against grant of discretionary writ relief. In contractual matters, interference was not warranted on the facts found.

Conclusion: The challenge to the agreement and demand notice was rejected and the writ petition was dismissed.

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