STATE OF HARYANA Vs. LIBERTY FOOTWEAR COMPANY

JUDGEMENT

(1.) The Excise and Taxation Commissioner, Haryana made an application under Section 42 of the Haryana General Sales Tax Act, 1973 before the Sales Tax Tribunal for referring the following questions of law for the opinion of this Court.

(2.) The respondent/assessee-firm was registered as a dealer under the provisions of Punjab General Sales Tax Act, 1948 (hereinafter referred to as the "Punjab Act") (as applicable to the State of Haryana) and also under the Central Tax Act, 1956 (hereinafter referred to as the "Central Act"). The assessee-firm was engaged in the manufacture and sales of shoes.

(3.) In the year 1971-72, the assessee-firm while filing its return under the Punjab Act claimed a deduction of Rs. 50,01,618.10. The aforesaid deduction was claimed under Section 5(2)(a)(v) being export sales. The assessee-firm claimed that it had entered into a contract on January 25, 1971 with the State Trading Corporation for the supply of shoes manufactured by it. The State Trading Corporation had earlier entered into a contract dated November 23, 1970 with Rezno Export. The assessee-firm entered into a contract dated January 25, 1971 to fulfil the aforesaid contractual obligations of the State Trading Corporation. Accordingly, the assessee-firm sold shoes worth Rs. 49,97,220/- during the year 1971-72. Vide an order dated March 12, 1974, the assessing authority allowed the deduction of Rs. 49,97,220/- holding that "he was satisfied that the goods (of this value) were actually exported outside India...." This deduction was permitted to the assessee under Rule 29(v) of the Punjab General Sales Tax Rules, 1949 (hereinafter referred to as the "Rules".)