SHREYANS SPINNING MILLS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) DELAY condoned.

(2.) HEARD on merits.

(3.) THE petitioner -assessee is a registered dealer. For the assessment year 1998 -99, the Assessing Authority accepted the returns of the assessee. The revisional authority in exercise of its power under Section 21(1) of the Punjab General Sales Tax Act, 1948 ("the Act") revised the said order and created additional demand. The case of the assessee was that it was entitled to deduction in the turnover under rule 29(xii) in respect of goods subject to payment of tax at first stage under Section 5(1A) of the Act which included goods exempted from tax. This contention of the assessee was rejected on the ground that rule 29(xii) was attracted only if the assessee made actual payment and not when the assessee purchased raw material from the unit which was exempted from tax.