RAJASTHAN WOOL INDUSTRIES Vs. STATE OF PUNJAB

JUDGEMENT

(1.) VIDE this order two General Sales Tax Reference Nos. 24 and 25 of 1984 are being disposed of as common question of law stands referred to this Court. The petitioner in both the cases is the same i. e. Messrs Rajasthan Wool Industries, Ludhiana, a registered dealer under the Punjab General Sales Tax Act, doing the business of manufacture of wool and yarn.

(2.) FOR the assessment years 1974-75 and 1975-76, quarterly returns were filed by the petitioner in time. The assessments were finalised in May 1980 by passing two separate orders for the two assessment years referred to above. Apart from imposing the tax, order of payment of penalty and interest was also made by the Assessing Authority. Two appeals were filed against such orders The Appellate Court maintained the orders with respect to the tax. However, with respect to imposition of penalty and charging interest, orders of the Assessing Authority were quashed. This was done on October 11, 1982. Amount of tax was determined at Rs. 15,639/ -. During the pendency of the appeal, a sum of Rs. 10,000/- was paid on March 24, 1992. Remaining amount of the Tax was paid on January 21, 1983.

(3.) AFTER serving fresh notices, the Assessing Authority on March 8, 1983 raised demands of penalty and interest on delayed payments of the tax as aforesaid. These demands were for Rs. 5400/- for the year 1974-75 and Rs. 6,000/- for the year 1975-76 The orders were passed on March 8, 1983 Against these orders two appeals were filed by the petitioner before the Deputy Excise and Taxation Commissioner which were dismissed on August 4, 1983 and thereafter the matter was taken to the Sales Tax Tribunal, Punjab who on January 27, 1984 upheld the orders. The following question of law in the two cases was thus referred to this Court for adjudication: