Purchase tax challenge fails where later binding precedent overrides earlier rulings on invalidity of the levy.

Earlier decisions treating purchase tax under the Haryana General Sales Tax Act, 1973 as unconstitutional had been displaced by later binding Supreme Court and Full Bench authority. On that updated legal position, the levy could not be invalidated on the ground urged, so the substantive challenge to purchase tax failed. The request for liberty to contest interest and penalty through the statutory appeal was a separate procedural matter and did not affect the merits of the levy itself, which was upheld on the point raised.

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Issues: Whether the levy of purchase tax under the Haryana General Sales Tax Act, 1973 was illegal and liable to be quashed.

Analysis: The challenge to purchase tax was based on earlier decisions which had treated such levy as unconstitutional. Those decisions were no longer good law in view of later binding Supreme Court authorities and the Full Bench decision of the High Court. In the light of the subsequent legal position, the levy of purchase tax could not be struck down. The request for liberty to challenge interest and penalty by appeal was a separate procedural matter and did not affect the merits of the levy itself.

Conclusion: The challenge to the levy of purchase tax failed and was rejected.

Final Conclusion: The writ petition did not succeed on the substantive challenge to purchase tax, and was dismissed, with liberty preserved to pursue the statutory remedy against interest and penalty.

Ratio Decidendi: Where earlier rulings on the invalidity of purchase tax have been displaced by later binding precedent, the levy cannot be invalidated on that ground.

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