Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2012 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 495 - PUNJAB AND HARYANA HIGH COURTPurchase tax under section 9 read with section 24(3) - job-work done by the petitioner on stock transfer of goods to other States by working out the purchases of goods utilised in manufacture including the consumable stores - taxable event – Held that:- Act of purchase of goods which are used in the manufacture of end-products and not the act of despatch or consignment - petitioner becomes liable to pay purchase tax when it purchase the raw material being the last purchaser - petitioner cannot escape the liability to pay purchase tax. It is on the basis of sound taxation policy of the State in respect of the declared goods that if sales tax is paid on the manufactured goods then the purchase tax on the raw material would not be payable but if sales tax is not paid then the liability to pay purchase tax is to continue. The aforesaid policy has been incorporated by the legislation in order to avoid double taxation - Decided against the assessee.
|