PARMA NAND JOGINDER PAL Vs. STATE OF PUNJAB

JUDGEMENT

(1.) UNDER Section 22 (4) of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act), the following question of law has been referred to this court for its opinion :

(2.) THE facts as are necessary for the decision of this reference are that the firm Messrs. Parma Nand Joginder Pal (hereinafter referred to as the assessee) in its return for the assessment year 1965-66 claimed deductions, out of its gross turnover, of the sales made to the registered dealers, amounting to Rs. 3,72,503. 07 under Section 5 (2) (a) (ii) of the Act. This deduction was disallowed. The main ground on which the deduction was disallowed by the Assessing Authority was that the assessee was not entitled to this exemption without furnishing the S. T. XXII forms. The appeal filed by the assessee was dismissed by the Deputy Excise and Taxation Commissioner and a further appeal was dismissed by the Sales Tax Tribunal. Ultimately, as directed by the High Court vide its order, dated 4th March, 1971, in S. T. Case No. 7 of 1970, the Sales Tax Tribunal has made this reference.

(3.) RULE 26, as it existed at the relevant time, of the Punjab General Sales Tax Rules, 1949, read as follows: