K. M. MEHTA, J. - FAG Precision Bearings Ltd. petitioner has filed this petition being Special Civil Application No. 3891 of 1997 under articles 226 and 227 of the Constitution of India with a prayer that this Court may issue appropriate writ, direction or order quashing and setting aside notices dated February 17, 1997 and consequent orders dated March 17, 1997 passed by the Deputy Commissioner of Sales Tax under section 42(1) of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the local Act") read with rule 37-A of the Gujarat Sales Tax Rules, 1970 (hereinafter referred to as "the GST Rules"). The petitioner has further prayed that assessment orders for the period September 1, 1976 to August 31, 1980 be quashed and further prayed to restrain permanently respondent No. 1, the Sales Tax Officer (Enforcement), Baroda, and respondent No. 3, the Sales Tax Officer, Division 2, Baroda, from passing any assessment orders against the petitioner for the period September 1, 1976 to December 31, 1984 as the same are time-barred. The petitioner has further prayed to restrain respondent Nos. 1 and 3 from raising any consequential demand of tax and direct the respondents to refund to the petitioner the sales tax collected by them or if it is paid by the petitioner along with return as per the direction of the Supreme Court of India along with interest at the rate of 24 per cent per annum from the respective dates of payment till the date of refund.

The facts giving rise to this petition are as under :

FAG Precision Bearings Limited, Baroda, petitioner, is a company having its registered office at Bombay and its head office and factory at Baroda. It is registered as a dealer under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act") as well as the local Act. The petitioner sells its goods within and outside the State of Gujarat. It has branch offices at various places in India. At places where the petitioner has branch offices, the petitioner despatches goods to its branch offices from time to time and the said branch offices subsequently sell the goods in the State in which they are located. The said sales, effected by the branch offices are subjected to local sales tax by the States, wherein the branch offices are located. In respect of sales effected directly by the petitioner in other States, the petitioner pays sales tax under the Central Act. It is subjected to tax under the local Act in respect of the sales effected by it within the State of Gujarat.

Along with Special Civil Application No. 3891 of 1997, Special Civil Applications Nos. 3892 of 1997 and 3893 of 1997 were heard as they raise common question of law in this behalf. However we narrate the facts of Special Civil Application No. 3891 of 1997 for the sake of convenience.

Before we appreciate the controversy raised in this petition, the learned counsel for the petitioner has invited our attention to the provisions of the local Act. Local Act is an Act to consolidate and amend the law relating to the levy of a tax on the sale or purchase of certain goods in the State of Gujarat. Section 2 of the local Act provides for definition. Section 2(10) defines the term "dealer" so as to mean any person who buys or sells goods in connection with his business and includes other persons stated therein. Section 2(25) of the local Act provides for "registered dealer" so as to mean a dealer registered under the provisions of the Act. Section 2(28) of the local Act provides for the term "sale" which means a sale of goods made within the State for cash or deferred payment or other valuable consideration including certain other aspects in the said definition. Section 3 of the local Act provides for "incidence of tax" which is a charging section under the provisions of the Act. Chapter V of the local Act provides for declarations, returns, assessments, payments, penalty, recovery and refund of tax, etc. Section 40 provides for declaration and return