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TMI Blog2012 (11) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the declared goods that if sales tax is paid on the manufactured goods then the purchase tax on the raw material would not be payable but if sales tax is not paid then the liability to pay purchase tax is to continue. The aforesaid policy has been incorporated by the legislation in order to avoid double taxation - Decided against the assessee. - CWP No. 10181 of 1992 (O and M) - - - Dated:- 5-1-2012 - M. M. Kumar and Ajay Kumar Mittal, JJ Avneesh Jhingan and Khagesh Gautam for the Petitioner Vinod S. Bhardwaj, Addl. Adv.-General, Haryana for the Respondent JUDGEMENT The judgment of the court was delivered by:- M. M. Kumar, J:- The instant petition filed under article 226 of the Constitution pra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn. In this manner, an additional demand of Rs. 3,65,702 for the assessment year 1983-84 ; Rs. 1,04,444 for the assessment year 1984-85 and Rs. 15,296 for the assessment year 1986-87 was raised. The assessee-petitioner preferred appeals against the said assessment orders (P1 to P3). The Joint Excise and Taxation Commissioner, vide common order dated June 26, 1991, partly allowed the appeals and remanded the matter back to the Assessing Authority for de novo assessment (P4). Feeling aggrieved, the assessee-petitioner challenged the order dated June 26, 1991 (P4) before the Sales Tax Tribunal, Haryana. The Tribunal rejected the appeals vide order dated May 8, 1992 (P5), holding that the first appellate authority was fully justified in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the last purchaser. However, the view taken in the case of Goodyear India Ltd. [1990] 76 STC 71 (SC) ; [1990] 2 SCC 71 did not find approval of the 3-Judge Bench of the honourable Supreme Court in the case of Hotel Balaji v. State of Andhra Pradesh [1993] 88 STC 98 (SC); [1993] Supp 4 SCC 536. The. rationale for doing so is discernible from para 91 and the relevant extracts reads as under (page 142 in 88 STC):- "91. ...Goodyear [1990] 76 STC 71 (SC); [1990] 2 SCC 71 takes only the last eventuality and holds that the taxable event is the removal of goods from the State and since such removal is to dealers' own depots/agents outside the State, it is consignment, which cannot be taxed by the State Legislature. With the greatest respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case, the honourable Supreme Court has observed as under (page 143 in 88 STC):- " ...The object is to tax the purchase of goods by a manufacturer whose existence as such goods is put an end to by him by using them in the manufacture of different goods in certain circumstances. The tax is levied upon the purchase price of raw material, not upon the sale price or consignment value of manufactured goods. Would it be right to say that the levy is upon consignment of manufactured goods in such a case? True it is that the levy materialises only when the purchased goods (raw material) is consumed in the manufacture of different goods and those goods are disposed of within the State Otherwise than by way of sale or are consigned to the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay purchase tax when it purchase the raw material being the last purchaser. It is a different matter that the payment of purchase tax is deferred till it is found that the manufactured goods are not to be subjected to sales tax. Therefore, the petitioner cannot escape the liability to pay purchase tax. It is on the basis of sound taxation policy of the State in respect of the declared goods that if sales tax is paid on the manufactured goods then the purchase tax on the raw material would not be payable but if sales tax is not paid then the liability to pay purchase tax is to continue. The aforesaid policy has been incorporated by the legislation in order to avoid double taxation. As a sequel to the above discussion, the instant peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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