GUPTA AGENCIES Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS judgment shall dispose of two General Sales Tax References No. 19 and 21 of 1985 relating to assessment years 1974-75 and 1975-76 respectively as the question of law in both the reference is the same which is in the following terms :

(2.) THE facts are being taken from G. S. T. R. No. 19 of 1985.

(3.) THE applicant, a registered dealer, dealing in resale of electric goods, filed his quarterly returns for the assessment year 1974-75, declaring gross turnover at Rs. 2,23, 162. 07. Deductions were claimed in respect of sales of tax free goods and sales made to the registered dealers. The Assessing Authority not being satisfied with the returns filed, issued a statutory notice in form S. T. XIV under Section 11 (2) of the Punjab General Sales Tax Act (hereinafter referred to as the Act), requiring the dealer to produce his accounts. The dealer appeared before the Assessing Authority in pursuance to the statutory notice issued to him and produced his accounts which were examined by the Assessing Authority and found to have been maintained in the normal course of his business. After allowing permissible deductions, the dealer was assessed to sales tax at Rs. 18,184. 79 Aggrieved against the order of assessment framed, the dealer filed an appeal before the Deputy Excise and Taxation Commissioner, on the ground that the Assessing Authority was in error in taxing the sales of electric goods at the rate of 10% instead of 6% and disallowing his claim for statutory deductions The Deputy Excise and Taxation Commissioner, vide his order dated 20 11 1979, partly accepted the appeal and deleted the amount of penalty imposed as it was held that the penalty was not exigible in the circumstances of the case. Against this order of the Deputy Excise and Taxation Commissioner, the dealer filed an appeal before the Sales-tax Tribunal who vide his order dated 3-1-1983, dismissed the appeal The dealer filed an application under Section 22 (1) of the Act claiming certain questions of law to be referred to this Court. This application was declined by the Tribunal vide its-order dated 1-6-1983 Against this order of the Tribunal, the applicant dealer filed a petition under section 22 (2) of the Act before the High Court and this Court vide its order dated 9 7-1984, directed the Tribunal to refer the question of law for its opinion reproduced in para No. 1 of this order.