STATE OF PUNJAB Vs. BAJAJ ELECTRICALS LIMITED

JUDGEMENT

(1.) The respondent-a Join Stock Company-has its principal place of business in Bombay, and a branch office in New Delhi. The Assessing Authority, Karnal, exercising power under the Punjab Professions, Trades, Callings and Employments Taxation Act 7 of 1956, assessed the respondent to profession tax for the years l960-61 and 1961-62 and issued a notice of demand for the amount so assessed. The High Court of Punjab quashed the notices of demand and the assessment orders holding that the respondent did not carry on trade within the State of Punjab and was not liable to be assessed to tax under the Act. The State of Punjab has appealed to this Court against the order of the High Court.

(2.) Section 3 of Act 7 of 1956 provides:

(3.) The Assessing Authority held that the respondent" may reasonably be regarded as selling goods within" the State of Punjab because it was supplying goods F. O. R. destination. The High Court held that the respondent could not in law be regarded as carrying on trade at the place at which the goods were supplied, merely because the railway or other receipts were taken out in the name of the respondent and presented to the purchasers duly endorsed in their favour to secure realization of the price of the goods.