DURGA RICE TRADERS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) IN this petition, the petitioners have prayed for quashing of a notification of the Government of Punjab dated June 27, 1986, made in exercise of the powers conferred by sub-section (1-A) of section 5 of the Punjab General Sales Tax Act, 1948 (Punjab Act No. 46 of 1948), annexure P-2, and for quashing of a direction issued by the Director, Food and Supplies and Special Secretary, Punjab Government to the District Food and Supplies Controller, Patiala, requiring him to recover back the sales tax paid to the petitioners in respect of bardana supplied to the department subsequent to July 4, 1986.

(2.) BY the notification, annexure P-2, dated June 27, 1986, it was notified that with effect from the date of publication of the notification in the Official Gazette, the tax under sub-section (1) of section 5 of the Punjab General Sales Tax Act, 1948, shall be levied at the first stage of the sale of bardana made of jute or fibres-synthetic or any other material. The first stages fixed under the notification are :

(3.) THE other contention of the learned counsel was that since ultimately they are supplying bardana to the Government and that transaction of sale by them to the Government is not taxable, their purchases also should not be taxed. This would only lead to the ultimate result that the sales tax should be at multi-point and at every stage of the sale or not at all. This cannot be the scheme of sales tax. Some goods are taxed at multi-point and some goods are taxed at single point and in this case the Government has chosen to levy tax at single point on the sale of bardana and no exception could be taken to that. The writ petition is absolutely devoid of merits and it is accordingly dismissed.