9911796707
TMI Blog1983 (2) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab General Sales Tax Act, 1948 (for short "the Punjab Act"), for reassessment of the cases of the petitioner-firm, relating to the turnover on account of sale of rice bran oil in the course of inter-State trade and commerce, pertaining to the year 1978-79, 1979-80 and 1980-81 respectively. The facts that gave rise to the filing of this writ petition, briefly stated, are that the petitioner-firm is a manufacturer, among other oils, of the rice bran oil and it sells the same to registered dealer having their place of business in other States or Union Territories of India, on the basis of form C. This process is termed as sale in the course of inter-State trade and commerce. The Governor of Punjab vide notification dated 11th January, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Authorities) in connection with the taxability of rice bran oil in the course of inter-State trade and commerce. It has been mentioned therein that rice bran oil is not edible oil as is presently manufactured in the State of Punjab and only a negligible proportion of this oil falls in the category of edible grade oil. Since rice bran oil produced in Punjab is not of edible grade the same should be taxed at the general rate, i.e., at the rate of 4 per cent on the sale of rice bran oil in the course of inter-State trade and commerce to dealers of other States against C forms. It was suggested that thorough scrutiny be made on the cases in the light of facts enumerated in the said letter before finalising assessment in such cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Act, read with section 11 of the Punjab Act. It was also stated that the rice bran oil was an inedible oil and was liable to tax on its sales in the course of inter-State trade and commerce to dealers in other States against C forms at the rate of 4 per cent. Mr. H.L. Sibal, Senior Advocate, the learned counsel for the petitioner-firm, has raised before me two contentions: (i) that after the assessment of the petitioner-firm for the abovementioned three years no definite information came into the possession of the Assessing Authority, clothing him with jurisdiction to proceed with reassessment, and (ii) that rice bran oil sold by the petitioner-firm was edible oil. It did not contain more than 8 per cent free fatty acids and 16 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the previous assessment should also be reopened. So, there was no definite information before the Assessing Authority, which may induce the belief that the turnover of the petitioner-firm had been under-assessed. The notices are illegal and without jurisdiction. There is no ample material on the file to decide the question as to whether rice bran oil sold by the petitioner-firm was edible oil or inedible oil. Even the constituents of the oil have not been brought out on the file by the parties. It is not disclosed as to which component or components of the rice bran oil, individually or collectively, is inedible or makes the whole oil inedible. So, this question could not be decided on the meagre data which is available. Moreover, in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
