STATE OF PUNJAB Vs. HIMACHAL GOVERNMENT TIMBER DEPOT

JUDGEMENT

(1.) RESPONDENT-HIMACHAL Government Timber Depot (hereinafter referred to as the assessee) sold by auction at Nangal timber to dealers registered in the State of Punjab as also to dealers who were registered outside the State of Punjab. Condition No. 8 of the terms and conditions of the auction required a bidding dealer registered outside the State of Punjab to furnish declaration in form C.

(2.) IN regard to the assessment years 1967-68 and 1968-69, the assessee claimed deductions from his gross turnover in terms of Section 5 (2) (a) (ii) of the Punjab General Sales Tax Act (hereinafter referred to as the Act) in respect of the sales made to dealers registered outside the Punjab State. The Assessing Authority in regard to both cases allowed the claimed deductions. The revisional authority, Deputy Excise and Taxation Commissioner, under Section 21 (1) of the Act suo motu decided to examine the legality and propriety of the assessment orders in question regarding the said two years. The revisional authority came to the conclusion that the Assessing Authority acted illegally in allowing the claimed deductions. According to him, the sales in question were intra-State sales and not inter-State sales and therefore, the assessee was not entitled to any deductions as claimed by him and he, therefore, in exercise of the powers of the Commissioner, modified the orders of the Assessing Authority and created additional demand quantum whereof is not necessary to state here. The respondent-dealer challenged that order in revision before the Sales Tax Tribunal. The Tribunal reversed the order holding that such sales as had taken place till 19th January, 1969 were inter-State sales by virtue of the existence of condition No. 8 in the terms and conditions of auction and such sales as had taken place after 20th January, 1969 when condition No. 8 was modified, would not be considered inter-State sales, and remanded the case to the Assessing Authority for reassessment. The State of Punjab applied to the Sales Tax Tribunal to refer the following two questions for opinion of the High Court :

(3.) THE Tribunal referred the following question to this Court as there existed no decided case of this Court in regard to the given question of law :