ELECON ENGINEERING Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE Sales Tax Tribunal has referred the following two questions to this Court under section 69 (1) of the Gujarat Sales Tax Act, 1969 : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the ground of appeal in respect of the levy of purchase tax under section 16 (1) of the Gujarat Sales Tax Act, 1969, in respect of purchase of packing materials against certificates in form 19, was not entertainable ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the ground regarding they levy of penalty under section 45 (1) and 45 (6) of the Gujarat Sales Tax Act, 1969, in respect of the purchase tax under section 16 (1) of the Act levied on the packing materials purchased against form 19, was not entertainable ?"

(2.) THE facts leading to the aforesaid reference in brief can be stated as under :

(3.) THE applicant-assessee preferred an appeal before the learned Assistant Commissioner against the aforesaid order of assessment. In view of the ratio of the decision of this Court in the case of Nowroji N. Vakil and Co. v. State of Gujarat [1979] 43 STC 238, the learned Assistant Commissioner held that there being clear beach of recitals in using goods purchased on the tax-free basis in job-work, purchase tax of the second category was attracted positively under section 16 (1) of the Act. Similarly, the learned Assistant Commissioner did not accept the applicant's contention regarding the sales made to the Gujarat Electricity Board as also to new industry.