SCIENCE HOUSE Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) THIS writ petition has been filed under Articles 226 and 227 of the Constitution of India for quashing the notices, annexures B, B-l and B-2, dated 5th June, 1972, issued by the Assessing Authority, Ludhiana, for reassessment under the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the "act" ).

(2.) THE facts of this writ petition in brief are that the petitioner is a registered firm under the Act and it deals in laboratory chemicals and laboratory apparatus, such as beakers, test tubes, flasks, jars, graduated cylinders, condensors, etc. , for schools, colleges and hospitals. In the year 1967-68, it was assessed to a sales tax of Rs. 15,375. 67 at the rate of six per cent, on the goods sold by the petitioner, namely, laboratory chemicals, beakers, test tubes, flasks, gas jars, graduated cylinders, condensors, etc. (annexure A), in the year 1968-69 to Rs. 20,601. 71 (annexure A-l) and in the year 1969-70 to Rs. 25,508. 49 (annexure A-2 ). The Assessing Authority, respondent No. 1, issued three notices on 5th June, 1972, relating to the aforesaid three years (copies annexures B, B-l and B-2) stating that the sales for the respective years have been underassessed the levy of appropriate tax. It is further stated that the petitioner should show cause as to why the reassessment should not be made against it. The petitioner has challenged the aforesaid notices on the ground that the aforementioned goods which are used in school, college and hospital laboratories cannot be termed as "luxury items" and that the respondent cannot charge a higher rate of tax on them.

(3.) THE respondent has contested the petition and stated that the aforesaid goods were glasswares under entry 23 of Schedule A of the Act and were liable to tax at the rate of eight per cent. On the basis of the definite information, a notice under Section 11-A of the Act was issued to the petitioner. It is also stated that the petition is premature as the matter has not been decided by respondent No. 1 as yet.