STATE OF PUNJAB Vs. PARDEEP AGGARBATTI

JUDGEMENT

(1.) THIS judgment will also dispose of Letters Patent Appeal Nos. 644 to 653 of 1984, 450 of 1988 and Civil Writ Petition No. 1388 of 1984, as the common questions of Law are involved in these cases. The facts of the case are being taken from L. P. A. No. 644 of 1984. The respondent-firm is a registered dealer under the Punjab General Sales Tax Act, 1948 (hereinafter referred to as "the Act") for the sale of dhoop and aggarbatti. In the quarterly return filed by the respondent for the assessment year 1973-74, the respondent-firm claimed that the sale of dhoop and aggarbatti be assessed to tax at the rate of 6 per cent. The Assessing Authority did not agree and levied sales tax at the rate of 10 per cent. The appeal filed by the respondent-firm against the order of assessment was allowed and the Assessing Authority was directed to calculate the sales tax on the sales of dhoop and aggarbatti at the rate of 6 per cent instead of 10 per cent. The Joint Excise and Taxation Commissioner initiated suo motu revisional proceedings to examine the legality and propriety of the aforesaid order, and vide order dated 22nd May, 1979, he set aside the same and restored that of the Assessing Authority, thereby holding that dhoop and aggarbatti were liable to be assessed to sales tax at the rate of 10 per cent. The revision petition filed by the respondent-firm against the order of the Joint Excise and Taxation Commissioner dated 22nd May, 1979, was also dismissed. The claim of the dealer before the learned single Judge was that it was liable to be assessed sales tax at the rate of 6 per cent and not at 10 per cent. This claim of the dealer was upheld. The State of Punjab has now come up in appeal against the order [see Pardeep Aggarbatti v. State of Punjab [1985] 58 STC 295 (P&h)] of the learned single Judge.

(2.) THE relevant portion of section 5 (1) of the Act as it exists today on the statute, is reproduced below :

(3.) ON substitution, entry No. 16 was bifurcated up to two entries numbered as 16 and 16-A and these are reproduced below :