KISSAN TRADING COMPANY Vs. STATE OF HARYANA

JUDGEMENT

(1.) This is a petition for quashing of the notice, annexure P1, issued by the Excise and Taxation Officer-cum-Assessing Authority, Karnal (respondent No. 2) to the petitioner to show cause as to why the paddy purchased by it may not be subjected to tax under Section 28-B of the Haryana General Sales Tax Act, 1973 (for short, "the 1973 Act") and why interest and penalty may not be levied upon it under Section 25(5) and Section 47 respectively.

(2.) A perusal of the record shows that the petitioner is engaged in the business of rice shelling. It is registered as a dealer under the 1973 Act and also under the Central Sales Tax Act, 1956 (for short, "the 1956 Act"). For the year 1997-98, the petitioner filed returns showing the purchase of paddy and sale of rice exported out of India on "H" form basis and claimed exemption under Section 5(3) read with Section 15(ca) of the 1956 Act. Respondent No. 2 did not accept the return and issued the impugned notice for levy of tax, interest and penalty.

(3.) The petitioner has challenged the proposed levy of tax, interest and penalty on the ground that the State Government does not have the jurisdiction to levy tax on the paddy purchased by it because the rice milled out of it was exported out of India and such transaction is exempt from payment of tax in view of the provisions contained in Sections 5(3) and 15(ca) of the 1956 Act.