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2009 (1) TMI 811 - PUNJAB AND HARYANA HIGH COURTLiability of the petitioners to pay purchase tax - Held that:- The argument that no purchase tax is deemed to be recovered while recovering the payment of rice would be wholly without substance because the obligation to pay purchase tax is not dependent on anything else but on the event to pay purchase tax. Such an event arises, as already noticed, when the petitioner-dealers purchase paddy being the last purchaser. The miller is to mill the paddy, which is raw material for extracting rice and other allied products. Even otherwise the costing sheet, etc., always keep the element of purchase tax in view which is ordinarily reimbursed to the miller. Therefore, the argument is wholly misconceived and is, thus, liable to be rejected. The rice sold to DFSC by the petitioner-dealers has not attracted the payment of sales tax and, therefore, the petitioner-dealers cannot avoid payment of purchase tax. The other contention of the petitioner-dealers that in the eyes of law they are deemed to have paid sales tax is equally devoid of merit because once the sale transactions of the petitioner-dealers are exempted under section 13B of the Act from payment of sales tax then it would not amount to granting exemption in respect of purchase tax as well. In law it cannot be presumed, as suggested, that sales tax has been paid by the petitioner-dealers. Assessee appeal dismissed.
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