AVTAR SINGH RANJIT SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS judgment will dispose of General Sales Tax References Nos. 8 and 9 of 1976.

(2.) BRIEFLY, the facts are that the petitioners are engaged in the business of purchase and sale of gur, shakar, vegetable ghee, etc. The Assessing Authority gave a direction to the firm to file monthly return on 27th December, 1956. Accordingly, the firm which had already filed quarterly returns for the first three quarters of the assessment year 1956-57, started filing monthly returns and did so till the end of the assessment year 1957-58. For the year 1956-57, it showed a gross turnover of Rs. 16,41,997-4-3. Deductions were claimed regarding sales made to registered dealers for an amount of Rs. 11,06,842-14-3. The gross turnover of the petitioner for the year 1957-58 was Rs. 19,74,483. 17. Deductions were claimed regarding the sales in favour of registered dealers to the tune of Rs. 8,97,301. 83.

(3.) THE Assessing Authority issued notices in form S. T. XIV on 27th August, 1958, in respect of both the assessment years which were served on the petitioner on 4th September, 1958. At the request of the petitioner, the case was adjourned from time to time on several occasions. Finally, it came up for hearing on 15th July, 1961. Nobody appeared on its behalf on the said date and consequently the Assessing Authority made an ex parte assessment. The gross turnover disclosed by it was taken to be correct in both the assessment years by the Assessing Authority but it disallowed deductions under Section 5 (2) (a) (ii) of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act), in respect of sales amounting to Rs. 7,69,400-14-6 regarding the assessment year 1956-57 and Rs. 4,25,657-13-6 for the assessment year 1957-58 on the grounds that the sales had not been made to registered dealers and that the declarations furnished were not genuine. An appeal against the order of assessment was rejected by the Deputy Excise and Taxation Commissioner, Punjab, on 11th January, 1965. A further revision to the Joint Excise and Taxation Commissioner was allowed by him on 23rd March, 1965.