PUNJAB STATE Vs. DADA MOTOR GARAGE

JUDGEMENT

(1.) THE instant reference under Section 22(1) of the Punjab General Sales Tax Act, 1948 (for brevity, 'the Act') has arisen out of order dated 10.9.1986 passed by the Sales Tax Tribunal, Punjab, Chandigarh (for brevity, 'the Tribunal') in Appeal No. 385 of 1985 - 86. The Tribunal while accepting the application filed by the Excise and Taxation Commissioner, Punjab, has referred the following three questions of law for adjudication of this Court:

(2.) FACTS in brief are that M/s Lohia Machines Ltd., Kanpur (for brevity, 'the Company') is a company registered and incorporated under the Companies Act, 1956, which has its registered office at Kanpur. An agreement was entered between the Company and M/s Dada Motor Garage, Jalandhar -assessee on 4.2.1984, which was duly signed by them. It required the assessee to maintain a showroom in accordance with the layout specifications and standards laid down by the Company, which was to be utilised by the Company for displaying its scooters and parts thereof. In pursuance of Rule 16(A) of the Punjab General Sales Tax Rules, 1949 (for brevity, 'the Rules'), the taxable quantum of a dealer who resides outside the State of Punjab but delivers goods for the purpose of consumption and sale in the State of Punjab is Rs. 5,000/ -, which was not complied with. Accordingly, a notice under Section 10(7) of the Act, for filing incorrect returns with the intention to evade tax, was served upon the authorised representative for appearance on 30.11.1984.

(3.) THE issue determined by the Assessing Authority was whether the taxable event passes through the hands of the authorised representative under the amended provisions of the CST Act or the local Act of Punjab. Accordingly, a notice was issued to the dealerassessee for furnishing complete documents in respect of at least one integrated transaction. The following documents in respect of one Shri Muni Lal, resident of 149, Bhagat Singh Colony, Byepass, Jalandhar, were submitted: