TRILOKI TRADERS Vs. STATE OF PUNJAB AND ANR.

JUDGEMENT

(1.) THE assessee has filed the present appeal challenging the order of the Sales Tax Tribunal, Punjab, Chandigarh dated November 28, 2005 raising the following substantial questions of law:

(2.) THE brief facts of the case are that the appellant is a registered dealer under the sales tax laws and is engaged in the business of packing material, ice, etc. The appellant filed four requisite returns under the Punjab General Sales Tax Act, 1948 for the assessment year 2002 -03. Not satisfied with the returns filed by the dealer -assessee, a notice under Section 11(2) of the Act was issued for framing assessment. In response to the said notice, the assessee along with his advocate appeared and also produced account books from time to time. During the scrutiny of purchase bills it was found that the assessee -appellant has purchased packing material, i.e., Silair air -bubble film from M/s. The Supreme Industries Ltd., Gwalior (MP). The assessee was liable to pay tax at the rate of four per cent for the said packing material at first stage within the State being the first seller after import as per notification dated February 23, 2002. However, the dealer -assessee has failed to discharge his tax liabilities. It was also found that he has returned sales worth Rs. 20,74,895.67 as sales to registered dealers under Section 5(2)(a)(ii) and has not paid the tax due. A notice dated April 23, 2003 was served upon the assessee giving him reasonable opportunity of being heard. The appellant -assessee in his written reply dated April 28, 2003 stated that he deals in resale in Silair air -bubble film which is taxable at last stage under the category of general goods and, therefore, no penal action or interest can be imposed upon the appellant.

(3.) THE assessee -appellant filed further appeal challenging the abovesaid order of the Deputy Excise and Taxation Commissioner (A), Patiala before the Sales Tax Tribunal, Punjab, Chandigarh. The Tribunal vide impugned order dated November 28, 2005 dismissed the appeal filed by the appellant while holding that the goods sold by the appellant, i.e., Silair air -bubble film was a packing material and the same was taxable at the first stage at the rate of four per cent.