Transitional tax concession limited to the lesser liability under old and new regimes; broader claim rejected as statutory.

Transitional tax relief under section 18 and rule 166 was treated as a statutory concession, not an enforceable right to recover tax already paid under the earlier sales tax regime. The rule validly limited relief to the lesser of the liability under the old law and the liability under the new law, operating within the enabling framework of section 18. On that basis, the clarification order rejecting a larger claim was consistent with the statute, and the challenge that the rule was arbitrary or ultra vires was not accepted.

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Issues: Whether transitional tax relief under section 18 and rule 166 could be claimed up to the tax already paid under the earlier sales tax regime, and whether the clarification order under section 90 was liable to be quashed.

Analysis: Transitional relief was held to be a concession created by the statute and not an entitlement as of right. Section 18 enabled the framing of rules, and rule 166 limited the relief to the lesser of the liability under the earlier law and the liability under the new law. The restriction, therefore, operated within the statutory framework and did not confer any benefit beyond the lesser liability. On that basis, the clarification/order rejecting a larger claim was held to be consistent with the statutory provisions, and the challenge to the rule as arbitrary or ultra vires was not accepted.

Conclusion: The claim for relief beyond the lesser tax liability was rejected, and the clarification/order was upheld.

Final Conclusion: The writ petition failed because the transitional concession was validly confined by the rule to the lesser of the two liabilities, leaving no ground for interference.

Ratio Decidendi: A transitional tax concession granted by statute can be restricted by the rule-making framework to the lesser of the liabilities under the old and new enactments, and such a limitation is neither arbitrary nor ultra vires when it flows from the enabling provision.

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