JIWAN SINGH JOGINDER Vs. STATE OF H.P.

JUDGEMENT

(1.) THE present case involves the interpretation of Section 5 A of the H.P. General Sales Tax Act, 1968 (Act No. 24 of 1968) (hereinafter referred to as the Act).

(2.) THE petitioner firm in the writ petition had also challenged the constitutional validity of the aforesaid Section. At the time of hearing of the petition, this point was not pressed by the learned Senior Counsel for the petitioner in view of the judgment of the Apex Court in the case of Hotel Balaji and Ors. etc. etc. v. State of Andhra Pradesh and Ors. , wherein similar provisions in the Sales Tax Acts of other States have been upheld.

(3.) A bare perusal of this Section shows that no tax is payable on the sale of goods specified in the first column of Schedule 'B'. It is undisputed that agriculture produce sold by the person who has grown the same is exempted from payment of tax. The petitioner purchases the maize directly from the farmers and as such no tax is leviable in terms of Section 7 aforesaid. Thereafter the petitioner sends the same to M/s. Sukhjit Starch & Chemicals Limited. The Assessing Officer issued notices to the petitioner and levied sales tax in terms of Section 5 A of the Act which reads as follows: