R K MACHINE TOOLS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE following question has been referred for opinion by the Presiding Officer, Sales Tax Tribunal, Punjab, under section 22 (1) of the Punjab General Sales Tax Act, 1948 (for short, "the Act") :

(2.) THE assessee-firm was engaged in the business of manufacture of yarn, etc. , and was registered under the Act as well as the Central Sales Tax Act. The firm filed quarterly returns for the assessment year 1972-73. Certain turnover had been shown in respect of the export of goods out of country and some sales had been declared being inter-State sales amounting to Rs. 1,57,81,198. 71. Total number of 86 "c" forms were produced by the assessee-firm in respect of inter-State sales amounting to Rs. 49,22,434. 27. The Assessing Authority, after examining those "c" forms, noticed that sales made to six purchasing dealers of Bombay did not qualify for the concessional rate of tax against the "c" forms. Certain enquiries were made by the Assessing Authority about the genuineness of those "c" forms given by the six Bombay dealers and, consequently, 14 "c" forms were treated to be not genuine. Sales made to those six Bombay firms against the aforesaid 14 "c" forms amounting to Rs. 27,20,079. 35 were treated to be ineligible for the concessional rate of tax. Therefore, tax at the rate of 10 per cent instead of 3 per cent was charged. The assessee-firm went in appeal before the Deputy Excise and Taxation Commissioner as well as the Tribunal failed. The plea of the petitioner was that the "c" forms in question were valid and genuine declarations and had been obtained from genuine purchasing dealers of Bombay. The assessee's plea, however, was not accepted and the levy of tax at the higher rate was upheld.

(3.) OUT of the aforesaid three questions, question No. 3 has been referred by the Tribunal in the following terms :