DURGA INDUSTRIES Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THIS writ petition is preferred by the Petitioner invoking the provisions of Article 226 and/or 227 of the Constitution of India. The Petitioner seeks quashing of orders dated 1st June, 1989 whereby reassessment of the Petitioner for the assessment year 1983 -84 was finalized. The Petitioner has also impugned the order dated 23rd January, 1990 whereby the appeal of the Petitioner in respect of assessment for the year 1985 -86 was rejected by the Assistant Commissioner, Zone -V. The aforesaid orders (hereinafter referred to the "impugned orders") were passed by the authorities under the following circumstances.

(2.) THE Petitioner is a registered partnership registered under the Delhi Sales Act, 1975 as well as the Central Sales Act, 1956. Its business consists of manufacturing of cycle parts in general and "Fork legs" in particular which is carrying on the business under the name and style of M/s Durga Industries. As per the Petitioner, it is allowed to purchase the following goods free of tax as per the following entry in column 2 (a) of the C.R.'s" -

(3.) IN the assessment year 1983 -84, the Petitioner filed its return which was processed and assessment orders dated 11th January, 1988 were passed by the Sales Tax Officer opining that the Petitioner was entitled to exemption on account of purchase of electrodes, cutting oil, acid and LDO and allowed the exemption on the basis of registration certification issued to the Petitioner. Thereafter, this assessment was reopened and reassessment order dated 1st June, 1989 was passed under Section 24(1) of the Delhi Sales Tax Act. However, while framing the reassessment in respect of assessment year 1983 -84, the Assessing Officer passed orders dated 1st June, 1989 stating that the Petitioner was liable to tax on the amount of purchase price of "electrodes" holding this purchase as unauthorized and calling upon the Petitioner to pay this additional sales tax.