HIGHWAY MOTORS PRIVATE LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS order will dispose of Sales Tax References Nos. 19 and 20 of 1975 in which the following questions of law have been referred for opinion of this Court at the instance of the assessee :

(2.) THE facts in the judgment are being given from Reference No. 19 of 1975.

(3.) THE assessee filed returns for the assessment year 1957-58 relating to the period 7th September, 1957, to 31st March, 1958, showing total sales at Rs. 5,87,616. 53. Out of the said sales, it claimed deductions for sales to registered dealers, exports, etc. , to the tune of Rs. 57,260. 72, thus leaving the taxable turnover at Rs. 5,30,355. 81. The Assessing Authority on perusal of the books account found that these had been maintained in the normal course of business and were reliable. However, it determined the gross turnover of the assessee at Rs. 6,24,385 and after allowing the deduction as claimed for, worked out the taxable turnover at Rs. 5,77,124. 63. The tax at 6 1/4 per cent was worded out on the said turnover. The assessee accepted the assessment and paid the tax demanded. The assessee was also assessed by the Assessing Authority, Solan, regarding sales effected by it there during the year 1957-58. One Mukand Singh filed a complaint on 5th October, 1962, that the assessee had shown sales of about 520 vehicles valued at Rs. 1,20,00,000 during the assessment years 1957-58 and 1958-59, in the books of Solan office whereas those sales had been transacted at Jullundur. On the basis of the complaint the Chief Enforcement Officer, Punjab, exercising the powers of the Excise and Taxation Commissioner issued a notice to the assessee on 2nd August, 1966, proposing to take suo motu action under section 21 (1) of the Punjab General Sales Tax, 1948 (hereinafter referred to as the Act), and to revise the order of the Assessing Authority. The assessee was required to appear before him along with the account books and other relevant records. In pursuance of the notice, K. B. Vig, manager of the assessee, appeared before him and filed an application dated 18th August, 1966, in which it was inter alia requested that he may be informed of the reasons for suo motu action. His jurisdiction to issue that notice was also challenged.