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2012 (5) TMI 558 - HC - VAT and Sales TaxWhether, the Tribunal was correct in law in holding that purchase tax was leviable under section 4B of the Punjab General Sales Tax Act, 1948 on the consumables purchased on the strength of registration certificate and used in manufacturing of taxable and tax-free goods? Whether the Tribunal was correct in law in holding that purchase tax was leviable on sugarcane under section 4(1) of the Punjab General Sales Tax Act, 1948 ? Held that:- In the present case, the issue is relating to exigibility to purchase tax regarding consumables which were used in the manufacture of taxable and tax-free goods. Following the principles as enunciated by in Thomas Stephen & Co. Ltd.'s case[1988 (3) TMI 59 - SUPREME COURT OF INDIA] the goods would be exigible to purchase tax. Thus, the Tribunal had correctly adjudicated the issue in favour of the State. Referring to question No. 2, the matter is no longer res integra. It stands decided against the petitioner in view of the following observations recorded by the honourable Supreme Court in Jagatjit Sugar Mills' case [1994 (10) TMI 259 - SUPREME COURT OF INDIA] stating that the purchase tax on sugarcane is levied by section 4(1), since it being an agricultural produce, and said to be sold by growers themselves, is exempt from tax on its sale under section 6.
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