GUJARAT STEEL TUBES LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) RULE. Mr. M. G. Doshit, learned advocate waives service of rule for the respondents. In the facts and circumstances of the case, the matter is taken up for final hearing.

(2.) THIS petition is filed by the petitioner for quashing and setting aside an order of assessment dated January 31, 1995 for assessment year 1991-92 passed by the Sales Tax Officer (I), Division X, being illegal and ultra vires. A prayer is made to restrain the respondents from recovering an amount of Rs. 18,14,512 or part thereof or to take any proceeding pursuant to the impugned order. The matter was placed for admission; notice was issued on March 28, 1995 and ad interim relief against recovery was granted. Today the matter is placed for hearing.

(3.) KEEPING in mind the above instructions, the cases were ordered to be disposed of. Subsequently the Gujarat Sales Tax Act came to be amended with effect from April 1, 1992 and the definition of "resale" in section 2 (26) came to be substituted. However, in the present proceedings we are not concerned with the amendment inasmuch as the question raised in the present proceedings relates to the assessment year 1991-92. According to the petitioner from the circular issued by the department, it was clear that the decision in Mohta Ispat Ltd. [1992] 87 STC 125 (Guj) was accepted by the department. Therefore, in accordance with the above decision as also the circular, the petitioner treated itself as manufacture for a period between April 1, 1991 to September 30, 1991 and for the remaining period between October 1, 1991 to March 31, 1992 as reseller buying goods after paying full tax and without issuing forms LL or OO. According to it, since iron and steel items were falling under the head "declared goods" there was no liability for additional purchase tax in respect thereof. Regarding other items such as zinc, paints, hardware, tools, etc. , which were not declared goods would fall within the purview of section 15b but the petitioner was entitled to set-off under rule 42 if the manufactured goods were sold within the State.