SHRI GANESH COTTON TRADERS Vs. STATE OF HARYANA

JUDGEMENT

(1.) This petition is directed against the order, annexure P3, dated May 28, 1999 passed by the Sales Tax Tribunal, Haryana (for short, "the Tribunal") dismissing the appeals filed by the petitioner against the orders passed by the Joint Excise and Taxation Commissioner (Appeals), Rohtak, rejecting its prayer for grant of rebate on the entire quantity of the raw material, i. e. , cotton seeds used for manufacturing the oil.

(2.) The petitioner is registered as a dealer under the Haryana General Sales Tax Act, 1973 (for short, "the Act" ). It is engaged in the manufacture of oil from cotton seeds purchased after paying tax at the first stage of sale. By an order dated March 16, 1998 the Deputy Excise and Taxation Commissioner-cum-Assessing Authority, Sirsa finalised the assessment for the assessment year 1993-94 and allowed proportionate rebate under rule 24-A of the Haryana General Sales Tax Rules, 1975 (for short, "the Rules") instead of granting full rebate on the tax paid on the cotton seeds. The appeals filed by the petitioner under section 39 (1) and (2) of the Act against the order of assessment were dismissed by the Joint Excise and Taxation Commissioner (Appeals), Rohtak and the Tribunal vide orders dated October 14, 1998 and May 28, 1999. Reference application filed by the petitioner under section 42 of the Act was also dismissed by the Tribunal vide its order dated June 22, 2000.

(3.) The petitioner has averred that the order passed by the Tribunal is contrary to the law laid down by the Supreme Court in Commissioner of Sales Tax, Bombay v. Bharat Petroleum Corporation Ltd. (1992) 85 STC 220 and its own order dated June 22, 2000 passed in S. T. M. Nos. 10-11 of 1999-2000 (Jyoti Luxman Roller Flour Mills P. Ltd. , Rohtak v. State of Haryana ). It has further averred that "khal" is a by-product obtained in the process of manufacturing oil from cotton seeds and, therefore, it is entitled to full rebate on the tax paid on the cotton seeds.