9911796707
TMI Blog1964 (10) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... In computing the taxable turnover the company deducted Rs. 10,85,842-74 nP. on account of unginned cotton purchased by it on a certificate of registra- tion granted to it on January 3, 1956. This deduction was not permitted by the Assessing Authority, Patiala District, also described as the District Taxation Officer, Patiala District. Exemption from tax was also claimed in respect of purchases of oil-seeds amounting to Rs. 4,47,437-33 nP., which the company claimed to exclude from the taxable turnover under section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948. This claim was also disallowed by the Taxing Authority. The company then filed a petition under Articles 226 and 227 of the Constitution in the High Court but by the order under appeal the petition was dismissed. During the course of the hearing Mr. G.S. Pathak abandoned the claim about oil-seeds and no reference need, therefore, be made to that part of the case. The tax is being levied under the Punjab General Sales Tax Act, 1948 (46 of 1948). This Act was amended from time to time and the amendments with which we are concerned were last made by Punjab Act 13 of 1959. Section 2(i) defines the "turnover" as includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax leviable on the sale of such goods, notwithstanding that such purchase is not covered by clause (ff) of section 2; ....." The registration of dealers is provided by section 7 which provides inter alia: "7. Registration of dealers.-(1) No dealer shall, while being liable to pay tax under this Act, carry on business as a dealer unless he has been registered and possesses a registration certificate. (2) Every dealer required by sub-section (1) to be registered shall make application in this behalf in the prescribed manner to the prescribed authority. (3) If the said authority is satisfied that an application for registration is in order, he shall, in accordance with such rules and on payment of such fees as may be prescribed, register the applicant and grant him a certificate of registration in the prescribed form which may specify the class or classes of goods for the purposes of sub- clause (ii) of clause (a) of sub-section (2) of section 5. ....." Section 5(2)(a)(ii) was substituted by Act No. 13 of 1959. The words underlined in it were inserted with effect from April 20, 1959, by Punjab Act No. 18 of 1960. When section 5(2)(a)(ii) was amended by the addition of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chased raw cotton for manufacture and ginned it in its ginning mills in the Punjab and sent the bales to Modinagar in Uttar Pradesh for manufacture of cloth in the company's mills situated there. It was thus claimed that the purchases of cotton were free of tax under section 5(2)(a)(ii) of the Sales Tax Act. Alternatively, it was submitted that if the section required that the manufacture should be in the Punjab, then as the raw cotton was ginned in the Punjab that condition was satisfied. It claimed that ginning of cotton was a manufacturing process which turned raw cotton into ginned cotton. It was thus contended that the requirements of the section were also fulfilled. A third argument was that there could be no tax because the charging section (section 5) of the Sales Tax Act was not complete after its amendment in 1959 because the section and the amended rules required a modified certificate of registration which was not issued as the Form was not prescribed. Lastly, it was con- tended that sections 4 and 5 of the Act provided for tax at 4% (4 paise per rupee) which was in conflict with the provisions of sections 14 and 15 of the Central Sales Tax Act, 1956, which created a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and it is clear the goods that are manufactured in the Punjab must be for sale. According to the section the goods which are the result of manufacture must be for sale and not for use by the manufacturer in some manufacture outside the State resulting in different goods. The goods which the company manufactured in the State of Punjab were bales of ginned cotton and they were admittedly not for sale because they were sent to its spinning and weaving mills in Uttar Pradesh. The exemption, therefore, could not be claimed in view of the fact that all the requirements of the section were not complied with. The contention that the charging section is incomplete without the prescription of the proper Form for the certificate of registration need not detain us. We have already shown that the old Form must be deemed to be modified and even otherwise the section and the Rules did not depend on the new Form. They were complete and effective. The registration certificate was only the evidence that the company was registered dealer for purposes of certain commodities to be used in manufacture, one of them being cotton. The omission to prescribe the new Form or to issue it did not render ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
