STATE OF PUNJAB Vs. PUNJAB FIBRES LIMITED

JUDGEMENT

(1.) The claim made by respondent Nos. 1 and 2 that they were "entitled to the concessional rate of purchase tax" in accordance with the notification dated November 23, 1979, having been accepted by the learned single Judge, the State of Punjab and its officers have filed these three Letters Patent Appeals. A few facts may be briefly noticed.

(2.) The feat respondent was registered as a company on February 16, 1979. It entered into an agreement with the Punjab State Industries Development Corporation for setting up a textile unit for the manufacture of yarn. On September 26, 1979, the company was registered as a dealer under the Punjab General Sales Tax Act, 1948. It was granted a licence under the Central Excise Rules, 1944 "to manufacture cotton yarn-all sorts" on May 12, 1981. The company was "registered under section 2(1) of the Factories Act 1948" on May 25, 1981. In the meantime, the respondent had applied for a power connection on December 22, 1979. It was sanctioned by the Punjab State Electricity Board on July 24, 1980. The tariff bill was raised on September 11, 1980. Permission for installation of a diesel generator was given vide letter dated March 17, 1981. However, the actual power confection was granted by the Board on July 18, 1981.

(3.) The respondent bought the first lot of cotton as raw material in "March 1981". The trial run of the factory was conducted in April, 1981. The production commenced on May 12, 1981. The yarn manufactured at the factory had left the premises on June 8, 1981.