JIWAN COACH BUILDERS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS Court has issued directions on November 25, 1992 under Section 22(2)(b) of the Punjab General Sales Tax Act, 1948 (for brevity, "the Act") directing the Sales Tax Tribunal, Punjab to refer the following question of law arising from S.T. Case No. 59 of 1992:

(2.) THE facts as have been revealed in the reference order are that the dealer is engaged in the manufacture of bus bodies and sale thereof. The assessment for the year 1972 -73 was framed by the Assessing Authority, Jalandhar on November 9, 1976 and additional demand of Rs. 67,087.19 was raised. The dealer preferred an appeal before the Deputy Excise and Taxation Commissioner (A), Jalandhar who had vide order dated September 9, 1977 accepted the plea of the dealer that the rate of tax on the bus bodies should be six per cent instead of 10 per cent in accordance with the instructions issued by the Excise and Taxation Commissioner, Patiala on January 8, 1974. On a suo motu proceedings initiated under Section 21(1) of the Act, the Excise and Taxation Commissioner, Punjab, examined the legality and propriety of the order dated September 9, 1977 passed by the Deputy Excise and Taxation Commissioner (A) and the same was set aside. The Commissioner also remanded the matter to the Assessing Authority for de novo assessment vide order dated July 9, 1981. Therefore, the assessment proceedings were initiated again. The Assessing Authority vide order dated February 23, 1982 again levied tax at 10 per cent on taxable turnover of Rs. 14,19,334 on the sale of bus bodies to the public. On appeal, the Deputy Excise and Taxation Commissioner (A) upheld the order of the Assessing Authority vide his order dated October 8, 1984 by observing that the Assessing Authority had rightly framed the assessment in accordance with the directions issued by the Commissioner and has charged tax at 10 per cent on the sale of bus bodies to public instead of six per cent. The dealer approached the Sales Tax Tribunal which has upheld the levy of tax at 10 per cent on bus bodies instead of six per cent vide its order dated September 29, 1990. It was thereafter that the dealer filed reference application before the Tribunal under Section 22(1) of the Act which was declined by the Tribunal vide its order dated July 31, 1991 by observing that the question of law referred for adjudication of this Court would not arise out of the order of the Tribunal. The declining of reference was challenged by the dealer before this Court under Section 22(2)(b) of the Act and accordingly vide order dated November 25, 1992 passed in Sales Tax Case No. 59 of 1992 directions were issued to the Tribunal for preparing the statement of case and refer the aforementioned question to this Court for adjudication.

(3.) ACCORDINGLY in accordance with the aforementioned observations, the bus bodies have to be regarded as component parts of the motor vehicle.