STATE OF PUNJAB Vs. AGRO GENERAL STORE JALANDHAR

JUDGEMENT

(1.) The following question of law has been referred to this Court for opinion under section 22 of the Punjab General Sales Tax Act, 1948 (for short, "the Act") at the instance of the State of Punjab :

(2.) The assessee deals in general merchandise goods. He was assessed to sales tax for the year 1976-77 by the Excise and Taxation Officer by order dated July 24, 1980. The turnover of Rs. 44,110 relating to battery cells was assessed to tax at 10 per cent. The assessee's plea was that battery cells were not to be subjected to the higher rate of tax inasmuch as those were not in the category and in the nature of "electrical goods". The Assessing Authority, however, took the view that the higher rate of 10 per cent was applicable to the electrical goods as mentioned at Sr. No. 17 of Schedule "a" to the Act. Section 5 (1) of the Act laid down the rate of sales tax at 10 per cent on the goods specified in Schedule "a" to the Act.

(3.) The Deputy Excise and Taxation Commissioner in assessee's appeal upheld the application of higher rate of tax at 10 per cent and did not agree with the assessee that the battery cells were not in the nature of "electrical goods" but were covered by the exceptions contained in entry 17 of Schedule "a". The assessee carried the second appeal before the Tribunal and succeeded. Entry 17 in Schedule "a" to the Act reads as under :