TMI Blog1975 (12) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... onercompany filed its quarterly returns and also placed statements showing the purchases of sugarcane and sales of sugar. The Assessing Authority vide its assessment order dated 25th March, 1975 (annexure A) held that the petitioner-company was liable for purchase tax to the tune of Rs. 6,68,963.76. The petitioner-company submitted written arguments before the Assessing Authority that it was not liable but its arguments were rejected. It is against the assessment order dated 25th March, 1975 (annexure P-1) that the present writ petition has been filed. Mr. Bhagirath Dass, the counsel for the petitioner, contends that the petitioner-company is not liable to pay the purchase tax on goods specified in Schedule B to the Punjab General Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport out of the territory of India, and no tax is payable on the purchase of such goods under any other provision of this Act, there shall be levied a tax on the purchase of such goods at such rate not exceeding the rate specified under sub-section (1) of section 5 as the State Government may direct." A reading of this section shows that a dealer is liable to pay tax under the Act if he purchases any goods other than those specified in Schedule B from any source. There is no ambiguity in the section. The intention of the legislature seems to be quite clear. It is settled law of interpretation that the words are to be interpreted as they appear in the provision, simple and grammatical meaning is to be given to them and nothing can be adde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, who, in the normal course of his business sells or purchases goods in the State of Punjab irrespective of the fact whether his main place of business is outside the said State and where the main place of business of any such person is not in the said State, dealer includes the local manager or agent of such person in Punjab in respect of such business. Explanation shows that a co-operative society or a club or any association which sells or supplies goods to its members or purchases goods specified in Schedule C is a dealer within the meaning of this clause. Explanation further shows that a factor, a broker, a commission agent, a dealer's agent, an auctioneer or any other mercantile agent by whatever name called and who carries on the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le B to the Act are exempted from the purview of the purchase tax. If the legislature had an intention to impose purchase tax on the purchase of sugarcane from the growers, it could clearly omit to mention agricultural produce in Schedule B to the Act but that is not so. Entry No. 39 of Schedule B clearly mentioned agricultural produce. Learned counsel for the State has submitted that entry No. 39 only exempts the growers to pay the sales tax and it does not exempt the dealer from payment of purchase tax. This argument has no merit. As section 4B of the Act is quite clear, the goods mentioned in Schedule B are exempted from the payment of purchase tax. If the State also wants to levy purchase tax on sugarcane or any other agricultural produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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