LAWS(P&H)-1984-2-26

HY-LAY POULTRY FARMS Vs. STATE OF HARYANA

Decided On February 24, 1984
HY-LAY POULTRY FARMS Appellant
V/S
STATE OF HARYANA Respondents

JUDGEMENT

(1.) M/s. Hy-Lay Poultry Farms, Karnal (hereinafter called the assessee), is a partnership concern which maintains a poultry farm in Village Kulwehri, District Karnal, Haryana State. Chickens of parent stock are reared by it and the eggs laid by them are handed over to Hi-Bred (India) Private Limited, Karnal, for the purpose of hatching. Hatching is done twice a week. Immediatly after the hatching of the eggs, the chicks are sexed and graded by the Hi-Bred (India) Private Limited and are delivered back to the assessee at its poultry farm. The assessee then transports the chicks in cardboard boxes to Delhi in the vans where the assessee had its head office. The head office delivers the goods to the customers from whom advance orders are received along with 10 per cent of the purchase price and the balance 90 per cent price is received at the time of delivery. From Delhi certain sales are made to local customers and some to customers of the neighbouring States. The assessee had started the business in the year 1969. The Assessing Authority, Karnal, started proceeding for the levy of intra-State and inter-State sales tax. The Assessing Authority came to the conclusion on the basis of the statements of Darshan Singh, accountant of the assessee, and Mrs. Tani Gurdip Singh, a partner of the assessee, that the chicks transported to Delhi, were in the course of inter-State sales. For the chicks sold within the State of Haryana, sales tax was levied under Section 4-A of the Punjab General Sales Tax Act, 1948 and for the inter-State sales, the sales tax was levied under Section 7 (1) of the Central Sales Tax Act, 1956. The assessee took the matter in appeals and the Deputy Excise and Taxation Commissioner found no merit in the same and rejected them. The assessee took the matter in further appeals before the Sales Tax Tribunal, Haryana (hereinafter called the Tribunal), and the Tribunal also rejected the appeals by order dated 17th July, 1975. The assessee sought references and the Tribunal has referred the following two questions of law for the opinion of this Court. (1) Whether or not on the facts and circumstances of this case, it could be said that there was a contract of sale in pursuance of which the applicant-firm moved chicks from Haryana to Delhi ? (2) Whether on the facts and circumstances of this case, it could be said that the goods were appropriated to the contract of sale in Delhi, and what should be the liability of the applicant to pay tax to the State taxation authorities ?

(2.) THE aforesaid two questions have to be answered on the basis of the following statement of facts as found by the Tribunal.

(3.) PROCEEDINGS for the following year, namely, 1970-71, were again started by the Assessing Authority and the same points were raised for consideration. Again the Assessing Authority on the basis of the material available before it came to the conclusion that the transportation of chicks to Delhi was in pursuance of a pre-existing contract of sale and consequently imposed tax under Section 7 (1) of the Central Sales Tax Act, 1956, considering them to be inter-State sales and for the sales made within the State of Haryana, tax was levied under the Punjab General Sales Tax Act, 1948. Against the orders of the Assessing Authority, the assessee filed Civil Writ Petition No. 1157 of 1976 in this Court which was initially dismissed in limine, but on appeal to the Supreme Court, the matter was sent back with a direction to admit the writ petition and to hear it at a regular hearing. Since the points arising in the references and the writ petition were common, the writ petition was ordered to be heard along with the references. That is how this writ petition has also been placed before us for hearing. Since counsel for the parties concede that common question arise in the references and the writ petition, therefore, they are being disposed of by this common judgment.