JUDGMENT

S.P. Bharucha, J.

1. This is an appeal by special leave against the judgment and order of a Division Bench of the Punjab & Haryana High Court whereby the writ petition filed by the respondents was allowed and Section 38 of the Haryana General Sales Tax Act, 1973 and Rule 53 of the Haryana General sales Tax Rules, 1975 were struck down as unconstitutional.

2. The respondents claimed in their writ petition to be clearing and forwarding agents. They rendered to their clients the service of booking and taking delivery of consignments at the railway stations at Sirsa and Hissar. On the instructions of their clients they arranged for booking of consignments to be transported by railway from the aforesaid railway stations and obtained the necessary documents in the names of their clients, similarly they took delivery of consignments on behalf of their clients at the aforesaid railway stations and handed over the same and the documents relative thereto to their clients. For such services they were remunerated by their clients. By virtue of Sub-section (1) of the said Section 38 of the Haryana General Sales Tax Act, 1973 (hereinafter referred to as the said Act) they were obliged to f