BHAWANI COTTON MILLS LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) (On behalf of himself, Subba Rao C. J. and Shah J.): In all these three appeals on certificate, the common judgment of the High Court of Punjab, dismissing the three writ petitions filed by the appellant, is under attack, by Mr. S. T. Desai, learned counsel for the appellant.

(2.) The appellant, who is the same in all these appeals, is the Bhawani Cotton Mills Ltd., running a cotton ginning factory, and engaged in the business of manufacturing yarn from cotton. It is a dealer, registered under the Punjab General Sales-tax Act 1948 (Punjab Act. No. XL VI of 1948), hereinafter called the Act. The appellant filed returns for the assessment years 1360-61, 1961-62 and 1962-63. It had paid a certain amount of tax which, according to it, was alone due from it. But, according to the appellant, it was not liable to pay Central Sales-tax on the purchase of cotton during the relevant accounting years. The appellant had taken various grounds of attack, before the assessing authority, but the most important contention raised, appears to have been that the material provisions in the Act, particularly the second proviso to S. 5 (1) and Cl. (vi)of S. 5 (2) (a) of the Act. enabling the State to collect purchase tax, in respect of cotton, are opposed to the material provisions of the Central Sales-tax Act l956 (Act LXXIV of 1956) (hereinafter called the Central Act). The appellant pleaded that it was not liable to pay, in consequence, any purchase tax, for the assessment years in question, in respect of cotton.

(3.) The Excise and Taxation Officer ,Ferozepore, did not accept the plea of the petitioner-appellant regarding its non-liability to pay the purchase tax on cotton. He, accordingly, passed orders of assessment including the turnover representing the purchases of cotton made by the appellant. The assessment orders for the years 1960-61 and 1961-62, are dated November 15, 1962, and for the assessment year 1962-63, is dated July.30,1963.