BALDEV RAJ Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS petition under Articles 226/227 of the constitution of India has been field by Dr. Baldev Raj of Muktsar for quashing the order dated 17th January, 1966, passed by the joint Excise and Taxation Commissioner, Punjab, in exercise of the powers under section 21 (1) of the Punjab General sales tax Act, 46 of 1948 (hereinafter called the Act)

(2.) ACCORDING to the allegations made in the petition, the petitioner is one of the leading doctors of Muktsar and his only business is to treat the patients by diagnosing their ailments and giving them proper medicines. He is not a chemist but dispenses his own prescriptions for the benefit of his patients. He does not dispense the prescription of any other doctor. He does not charge any consultation fee and the medicines prepared by him for his patients cannot be resold in the market either in whole-sale or in retail like medicines prepared by the chemists. Upto the end of the year 1962, he was never assessed to any sales tax but in 1963, notices were issued to him for the years 1959-60 to 1962-63 under the Act for showing cause why he should not be assessed to sales tax. He gave a reply to the notices stating that he was carrying on the profession of a doctor and, therefore, was not liable to sales tax under the Act. He further pleaded that he was not a manufacture of medicines and even if by any stretch of interpretation he could be brought under the Act, he could not be considered as a manufacture but could only be taxed as an ordinary dealer. It may be noted that the taxable quantum in the case of a dealer is Rs. 50,000/- while in the case of a dealer who manufactures any goods for sale it is Rs. 10,000/ -.

(3.) THE Assessing authority accepted that the petitioner was the registered medical practitioner carrying n the profession of a doctor and that he was not running any business as a chemist. It was also accepted that he did not prepare medicines on the prescriptions of other doctors. He was, however considered as a manufacturer and since his gross turnover was assessed at a figure higher than Rs. 10,000/-, sales tax was imposed on him by order dated 29th June, 1963 under section 11 (6) of the Act.