9911796707
TMI Blog1960 (7) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-50 and 1950-51 the assessing authority allowed an exemption in respect of these drugs from the sales tax, holding that they fell under item 37 of the Schedule. For the year 1951-52 the assessing authority refused to grant any exemption. The matter was taken up in appeal by the assessee with regard to the third assessment in respect of the year 1951-52, and the Excise Department filed two revision petitions against the orders in respect of the first two years in respect of which exemption had been allowed by the assessing authority. The appeal of the assessee was dismissed and a revision petition was also filed by them. The matter ultimately came up before the Excise and Taxation Commissioner, and he took the view that the assessee was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coming into force of the Constitution any article containing alcohol was liable to excise duty under the Punjab Excise Act. Section 3(6)(c) read-"any medicinal or toilet preparation containing alcohol." Therefore, before the 26th of January, 1950, the goods prepared by the assessee-company were subject to excise duty under the Punjab Excise Act. With the passing of the Constitution, medicinal or toilet preparations containing alcohol could only be taxed by the Centre, as this item was transferred to the Union List. Nevertheless, the Punjab State continued to collect this duty by virtue of the powers conferred by Article 277 of the Constitution which reads: "Any taxes, duties, cesses or fees which, immediately before the commencement of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the Punjab Excise Act. Item 37 of the Schedule attached to the East Punjab General Sales Tax Act is"All goods on which duty is or may be levied under the Punjab Excise Act, 1914, or the Opium Act, 1878." Such goods are exempted from sales tax. The excise duty, which is being charged by the Punjab State by virtue of Article 277, is clearly a duty which is being levied under the Punjab Excise Act of 1914, even though item (c) of sub-section (6) of section 3 was omitted by the Adaptation of Laws Order, 1950. Article 277 was intended to provide continuity in the fiscal law of the State, and the power given by it was the power derived under the Punjab Excise Act. Therefore, it is clear that the duty, which is being levied on the finish ..... X X X X Extracts X X X X X X X X Extracts X X X X
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