STATE OF PUNJAB Vs. SANSARI MAL PURAN CHAND

JUDGEMENT

(1.) The respondents are dealers assessable to sales-tax under the East Punjab General Sales-tax Act, 1948. In their return for the assessment years 1935-56, 1956-57 and l957-58 they claimed exemption from tax in respect of sales of edible oils. It is common case before us that this exemption was claimed in respect of sales of edible oil produced in ghanis run by mechanical process. By his orders dated March 3, 1959, April 9, 1959 and July 17, 1959. the Assessing Authority, Jullundur held that exemption from tax was not allowable under item No. 57 of the schedule of tax-free goods as substituted by the Punjab Government Notification No. 3483-E and T-54/723(CH) dated August 5, 1954. The appeals from these orders were dismissed by the Deputy Excise and Taxation Commissioner. Jullundur Division by his orders dated August 3, 1959 and February 16, 1960. Bevision Petitions from these orders were dismissed by the Excise and Taxation Commissioner. Punjab by his orders dated November 24, 1961. Revision Petitions from the last orders were dismissed by the Financial Commissioner, Revenue, Punjab by his orders dated April 27, 1962. On the application of the respondents, the Financial Commissioner, Revenue, Punjab by his order dated August 9, 1962 referred under S. 22(1) of the Punjab General Sales-tax Act,1948 the following question of law for the decision of the High Court of Punjab at Chandigarh:

(2.) To appreciate the points in controversy, it is necessary to refer to the course of legislation. The East Punjab General Sales-Tax Act (East Punjab Act No. 46 of 1948) was enacted on November 15, 1948. Section 4 of the Act provided for the incidence of taxation and declared that the classes of dealers specified in sub-ss. (1), (2), (3) and . (4) would be liable to pay tax under the Act. Section 5 (1) was in these terms:

(3.) It is common ground before us that before the passing of the East Punjab Act No. 19 of 1952 the State Government had issued notifications under S. 5 fixing the rates of tax. In exercise of its powers under S. 6(2) of the Act, the Punjab Government issued the notification No. 3483-E: and T-51/2518 dated May 30, 1951 adding item No. 57 (edible oils) to the schedule referred to in S. 6 (2). The entry was as follows :