9911796707
TMI Blog1996 (7) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference relates to the assessment year 1975-76. The Sales Tax Tribunal, Punjab, referred the following question for decision of the High Court: "Whether raw material purchased within the country and used for manufacture of finished product not subject to sales tax in the local market, which ultimately is exported out of the territory of India will be exempted from purchase tax under section 4B in view of the provisions of section 29(1)(a)(ii) of the Punjab General Sales Tax Act, 1948?" 2.. The aforesaid question was referred by the Tribunal on the basis of the order dated June 7, 1979 passed by the Assessing Authority imposing purchase tax and penalty on the petitioner for the assessment year 1975-76 in respect of the goods manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose raised in C.W.P. No. 11034 of 1988. 4.. In C.W.P. No. 9361 of 1994, the petitioner has questioned the levy of purchase tax for the assessment year 1980-81. Grounds of challenge to the order of assessment, etc., are identical to those raised in C.W.P. No. 11034 of 1988. C.W.P. No. 13266 of 1995 relates to the assessment year 1981-82. During this year, the petitioner is said to have exported shoddy woollen blankets worth Rs. 2,59,89,339 and has claimed exemption from payment of tax on the premise that in respect of the goods exported by it, the petitioner is not liable to pay purchase tax and the authorities constituted under the "Act of 1948" have illegally levied such tax. 5.. The principal contention urged by Shri Raja Ram Aggarwal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of shoddy blankets. Learned counsel distinguished the decision of the Full Bench of this Court in United Riceland Limited v. State of Haryana [1997] 104 STC 362 and two judgments of the Division Benches in C.W.P. No. 2300 of 1993, Satnam Overseas Limited v. State of Punjab decided on October 19, 1995 and Sachdeva & Sons Rice Mills (P) Ltd. v. Asstt. Excise & Taxation Commissioner [1997] 107 STC 507 by pointing out that the Full Bench decision relates to the Haryana General Sales Tax Act, 1973 which is not pari materia with the Punjab Act and in two Division Benches' decisions section 4B has not been correctly interpreted. The learned Senior Deputy Advocate-General argued that the purchase tax is being levied on raw material purchased by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustments, if any, are permissible under section 15A of the Act. The petitioners have not claimed any adjustments within the meaning of section 15A of the Act and rightly so because they are claiming exemption from payment of initial tax on the purchase of paddy used for the purpose of husking rice intended to be exported. Keeping in view the principles of interpretation of statutes, as noted hereinabove, the intention of the Legislature to impose tax on the purchase of paddy used for export of rice is so well demonstrated that there is no escape than to accept the contention raised on behalf of the respondent-State and hold the petitioners liable to the tax liability." The Full Bench concluded: "(i) That the provisions of Haryana Act No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir Lordships have examined the issue relating to the liability of the petitioner to pay purchase tax on the sugarcane purchased by it. The argument advanced on behalf of the petitioner was that sugarcane being a commodity covered by appendix 'B', it was not liable to pay purchase tax. Repelling this argument, the Supreme Court held that the purchase tax is leviable under section 4(1) and section 4B and is intended only to grant exemption in certain circumstances. This is how the Full Bench in United Riceland Limited v. State of Haryana [1997] 104 STC 362 (P&H) has understood the law laid down by the Full Bench. The Division Bench in Satnam Overseas Ltd. v. State of Punjab (C.W.P. No. 2300 of 1993 decided on October 19, 1995) has held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
