SAT PAL AND SONS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) AT the instance of the assessee the Sales Tax Tribunal, Punjab, Chandigarh, on the basis of order dated September 18, 1995, passed by this Court in the case of the dealer for the assessment year 1984 -85, has referred the following questions of law for opinion of this Court:

(2.) FACTS as per the statement sent by the Tribunal are that the assessee is a registered dealer under the sales tax laws and is engaged in crushing of oil seeds. It had filed returns for the year 1984 -85 with the Assessing Officer for a sum of Rs. 46,11,082.17 claiming sales to the registered dealers to the extent of Rs. 33,34,508.49. The Assessing Officer recorded dissatisfaction with the returns filed by the dealer and sent a notice to it under Section 11(2) of the Punjab General Sales Tax Act, 1948 (for brevity, "the Act") which was duly served upon the dealer. The dealer tendered his reply contesting the claim of the Revenue. During the assessment proceedings, it was found that the sales made to 10 registered dealers were bogus because they were either non -existent or bogus dealers, which amounted to Rs. 7,32,126.30. Accordingly, the claim made by the dealer to that extent was disallowed and was added to the total turnover declining its deductions claimed under Section 5(2)(a)(ii) of the Act. The aforesaid addition resulted in additional demand of Rs. 1,21,305.29, vide order dated February 29, 1988 which included penalty of Rs. 40,000 under Section 10(7) and interest amount of Rs. 28,246 inflicted under Section 11D by the Assessing Authority.

(3.) AGAINST the order dated January 29, 1988, the dealer approached the Tribunal which vide its order dated November 30, 1992 dismissed the appeal. The dealer then approached this Court for referring the questions of law for adjudication. This Court vide order dated September 18, 1995 directed the Tribunal to refer the questions of law for adjudication of this Court. Accordingly, the aforementioned questions of law have been referred to this Court.