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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether rule 19(2) of the Assam General Sales Tax Rules, 1993, which denied use of form A to works contractors, was ultra vires Article 366(29A)(b) of the Constitution of India and beyond the rule-making power under section 72 of the Assam General Sales Tax Act, 1993, and whether the reassessment order founded on that rule could survive.
Analysis: The relevant statutory scheme treated the transfer of property in goods involved in a works contract as a deemed sale under section 8(1)(e) read with section 2(33)(ii) of the Assam General Sales Tax Act, 1993. Rule 19(2), however, created a restriction not found in the parent Act by excluding works contractors from the benefit of form A. The restrictive provision was held to lack support in the main Act, to go beyond the delegated legislative power conferred by section 72, and to conflict with the constitutional and statutory scheme governing deemed sales in works contracts. Once the rule was held unenforceable, the reassessment made on its basis could not stand.
Conclusion: Rule 19(2) was held ultra vires and void, and the reassessment order was quashed.
Final Conclusion: The writ petition succeeded, the impugned restriction on works contractors was struck down, and the consequential reassessment was set aside.
Ratio Decidendi: A delegated rule that creates a restriction or disability not authorized by the parent Act, and that is inconsistent with the constitutional and statutory treatment of deemed sales in works contracts, is ultra vires and unenforceable.
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