STATE OF PUNJAB Vs. PUNJAB FIBRES LTD

JUDGEMENT

(1.) These Appeals are against the judgment dated 31st August, 1998 of the Punjab and Haryana High Court.

(2.) Briefly stated the facts are as follows : The first Respondent is a Spinning Mill, which claimed benefit of Notification issued by the Punjab Government on 23rd November, 1979. As the decision in this case depends on the Notification it is reproduced herein for the sake of convenience:-

(3.) Initially, the Assessing Authority granted to the Respondents concessional rate of tax as per the said Notification. However, the Joint Excise and Taxation Commissioner invoked his suo motu powers under Section 21 of the Punjab General Sales Tax Act, 1948 on the ground that the Mill was not established prior to 1st December, 1979 and that the Respondents had been transferring yarn outside the State. After considering the reply of the Respondents, the Assessing Authority held that the Respondents were not entitled to the benefit of the Notification. They, therefore, asked the Respondent to pay the differential rate of duty and penalty.