SWARAJ MAZDA LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Invoking the provisions of Section 68(1) of the Punjab Value Added Tax Act, 2005 (for brevity "the Act"), the appellant-assessee Swaraj Mazda Limited (for short "the assessee") has filed the present appeal against the impugned order dated 17.3.2006 (Annexure A12), vide which, the Sales Tax Tribunal, Punjab dismissed its appeal.

(2.) The compendium of the facts, culminating in the commencement of, relevant for disposal of present appeal and emanating from the record, is that the assessee was manufacturing light commercial vehicles, having its branches all over the country. One of its branches (Sale Office) was stated to be located and independently functioning as "Swaraj Mazda Limited, Lotus Building, Stilt Floor, NECO Gardens, Viman Nagar, Nagar Road, Pune, Maharashtra. The main job of its Pune Branch is simply to procure orders from various customers of Maharashtra State and supplied the vehicles after receiving the same from its head office and factory in Punjab.

(3.) The assessee claimed that its Pune branch office receives the vehicles sent by the factory from Punjab and enters the same in its stock. Its sale is, thereafter, made by raising the invoice at its branches and vehicles are sold at 'all inclusive price'. The buyer does not pay any extra transportation charges or other related expenses. It was alleged that the Pune Branch of the assessee received a contract of supplying of seven vehicles with different specifications and for supply of 15 nos. of prison vans with certain specifications to Maharashtra Police. Consequently, the assessee manufactured the vehicles, as per requirement, in its factory in Punjab and was in process of sending the same to Maharashtra State. On 7.5.2001, these new vehicles were stopped and checked at ICC, Jharmari (Lalru) by the Taxation Officer. The drivers of the vehicles produced all the relevant documents relating to the goods.