NUWARE INDIA LIMITED Vs. STATE OF HARYANA

JUDGEMENT

(1.) By way of these two petitions, the petitioner seeks issuance of a writ of certiorari for quashing impugned order dated December 6, 1994 as also consequent notices regarding disallowance of rebate under the Haryana General Sales Tax Act (in short, "the Act") and for recovery of tax in respect of assessment years 1985-86 and 1987-88. As these writ petitions involve common questions of fact and law, they are being taken up together for adjudication. Facts have been taken from CWP No. 10393 of 1995.

(2.) The petitioner-company is a manufacturer of melamine crockery which is packed in corrugated boxes, polythene bags and tissue paper. Such packing is necessary to avoid wear and tear in transit and to make the product marketable. The invoice which is raised by the petitioner for sale of such crockery, contains a foot-note to the effect that "our rates are inclusive of packing material costs". Polythene bags, tissue papers, corrugated boxes and other packing material are purchased by the petitioner after paying sales tax from a dealer who was being granted rebate of sales tax paid, by the assessing authority, i.e., respondent No. 4. However, pursuant to suo motu order dated September 12, 1988, respondent No. 3 issued notice to the petitioner on September 29, 1989 exercising powers of revision under section 40 of the Act. This action of the revisional authority in issuing a show-cause notice was challenged by the petitioner before the Tribunal. Agreeing with the pleas of the petitioner, the Tribunal had remanded the case to respondent No. 3 by making the following observation:

(3.) Thereafter, respondent No. 3 vide order of October 5, 1992 rejected the claim of the petitioner and denied benefit of rebate of sales tax, as was granted by the Assessing Authority and rather sought to levy interest under the Act.