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Judgment
This is a petition for quashing order annexure P3 dated December 26, 2002 passed by the Assessing Authority, Jalandhar, for levy of social security cess under the Punjab Social Security Act, 2000 (for short, "the Act").
The petitioner has relied on the judgment of this Court in Pioneer Agro Extracts Ltd. and Another Vs. State of Punjab and Others, , vide which the Act was declared ultra vires to the legislative competence of the State and averred that in view of that judgment, the respondent cannot assess the petitioner for levy of social security cess.
The respondent has not denied the fact that the Act has been declared unconstitutional but he has tried to defend the impugned order by asserting that SLP filed against the judgment of the division Bench of the High Court is pending.
In our opinion, mere pendency of the SLP cannot justify initiation and/or continuance of the proceedings under the Act which has been declared unconstitutional. Indeed, it is not the case of the respondent that operation of the order passed by this Court in Pioneer Agro Extracts Ltd. and Another Vs. State of Punjab and Others, has been stayed by the Supreme Court. Therefore, we have no hesitation to quash the impugned order.
For the reasons stated above, the writ petition is allowed and order annexure P3 is declared illegal and quashed.
However, it is made clear that the respondent shall be free to take appropriate action for levy and recovery of cess if the judgment of this Court in the case of Pioneer Agro Extracts Ltd. and Another Vs. State of Punjab and Others, is reversed by the Supreme Court.