KITPLY INDUSTRIES LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The petitioner, who is registered dealer under the provisions of the Punjab General Sales Tax Act, 1948, inter alia, was dealing in plywood during the assessment year in question. The plywood was taxable at the last stage of sale.

(2.) On March 12, 1993, a notification was issued by the State Government making plywood taxable at first stage of sale with immediate effect. Subsequently, the said notification was superseded by notification dated May, 10 1993 to the effect that taxability of plywood at first stage of sale will be applicable with effect from July 1, 1993. The dispute arose with regard to the period from March 12, 1993 to May 9, 1993. During that period, the petitioner collected and paid tax at the first stage of sale, which was not liable to be paid in view of subsequent notification.

(3.) At the time of assessment for the year in question the claim of the petitioner regarding taxability of sale of plywood at last stage of sale was accepted for the period up to June 30, 1993 in view of notification dated May 10, 1993, however, the revisional authority took a different view and held that even if the notification dated March 12,1993 was superseded vide notification dated May 10, 1993 which subsequently mentioned that the plywood would be taxable at the first stage with effect from July 1, 1993, still for the period even prior to that, notification dated March 12, 1993 will remain operative and sale of plywood for the period between March 12, 1993 to May 9,1993 is also to be treated as taxable at first stage of sale and accordingly created demand against the petitioner. In appeal filed against the order of revisional authority before the Tribunal, the petitioner failed. Even rectification application was also rejected by the Tribunal.