JAIN STEEL INDUSTRIES Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioner has filed this petition under articles 226/227 of the Constitution of India for quashing the impugned orders dated March 31, 1992, annexures P12 to P16, and orders dated May 14, 1993, annexures P18 to P22, passed under sections 20 and 21-A of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as "the Act") by the Presiding Officer, Sales Tax Tribunal, Punjab.

(2.) BRIEFLY stated, the facts of the case are as under : During the course of checking. Excise and Taxation staff intercepted truck No. PCK-3287 carrying 147 quintals of iron billets on September 10, 1988, at G. T. Road, Ludhiana, near octroi post. The documents accompanying the goods were checked. During scrutiny of the documents accompanying the goods, an attempt to evade tax was suspected. As a result of this, a penalty of Rs. 15,000 was imposed vide order dated September 11, 1989, under section 14-B (7) of the Act for transporting goods without proper and genuine documents. Similarly, during the course of checking. Excise and Taxation staff intercepted truck No. PCK-3827 carrying 193. 80 quintals of iron billets on April 20, 1988, at G. T. Road, Ludhiana near octroi post. During scrutiny of the documents accompanying the goods, an attempt to evade tax was suspected. As a result of this, a penalty of Rs. 20,000 was imposed vide order dated September 11, 1989, under section 14-B (7) of the Act for transporting the goods without proper and genuine documents. Similarly, during the course of checking. Excise and Taxation staff intercepted truck No. PUN-1325 carrying 154. 40 quintals of iron billets on June 20, 1988, at G. T. Road, Ludhiana near octroi post. During the scrutiny of the documents accompanying the goods, an attempt to evade the tax was suspected. As a result of this, a penalty of Rs. 23,000 was imposed vide order dated September 11, 1989, under section 14-B (7) of the Act for transporting the goods without proper and genuine documents. Similarly, during the course of checking. Excise and Taxation staff intercepted truck No. PAT-7932 carrying 211. 80 quintals of iron billets on June 20, 1988, at G. T. Road, Ludhiana near octroi post. The documents accompanying the goods were checked. During the scrutiny of the documents accompanying the goods, an attempt to evade the tax was suspected. As a result of this, a penalty of Rs. 23,000 was imposed vide order dated September 11, 1989, under section 14-B (7) of the Act for transporting the goods without proper and genuine documents. Similarly, during the course of checking, Excise and Taxation staff intercepted truck No. PCK-3927 carrying 15 metric tonnes of iron billets on September 10, 1988, at G. T. Road, Ludhiana near octroi post. The documents accompanying the goods were checked. During the scrutiny of these documents, an attempt to evade the tax was suspected. As a result of this, a penalty of Rs. 15,000 was imposed vide order dated September 11, 1989 under section 14-B (7) of the Act for transporting the goods without proper and genuine documents.

(3.) THE case of the petitioner is that there was no purchase or sale of goods, and that the petitioner is only a conversion agent of SAIL and the goods intercepted by the Excise and Taxation staff were being transported for purposes of conversion and not in consequence of any sale by SAIL or purchase by the petitioner and as such the goods were not meant for trade. In response to the notice of motion issued, written statement on behalf of respondents Nos. 1 and 2 has been filed by Shri S. J. S. Viesla, Excise and Taxation Officer, Ludhiana-I. In the written statement, it has been admitted that the petitioner is a conversion agent of SAIL as per agreement dated September 16, 1985. It has been further stated in the written statement that it is wrong that the petitioner does not purchase goods from "sail". It has been further stated therein that according to clause No. 1 of the said agreement, the petitioner has to purchase 5,200 metric tonnes from SAIL and the clause reads as under :