1967 (4) TMI 110 - SUPREME COURT

Whether the stage of levy is definite and ascertainable and there is no possibility of the tax being levied at more than one stage?

Held that:- Appeal allowed. The High Court has sustained the levy of tax under the original notification of 1958, on the basis of section 22 of the Punjab General Clauses Act, which, in our opinion, does not assist the State. It is not open to the State to urge that it is entitled, in the matter of levying tax on transactions by way of purchase, to tax only the category of purchases for use in the manufacture of goods for sale. Further, the State has not been able to satisfy us that there is any reasonable classification made, which will enable this Court to sustain the notification. Inasmuch as no fresh notification had been issued, under section 5(1), till September 26, 1961, the assessment for the years 1960-61 and 1961-62, on the basis of the notification issued in 1958, cannot be sustained, on this additional ground also.