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of <h1>Court upholds purchase tax on old ornaments, rejects challenge. Reminder: Use statutory remedies, avoid writ jurisdiction.</h1> <h3>Jugal Kishore Brij Mohan Versus The State of Punjab and Others</h3> Jugal Kishore Brij Mohan Versus The State of Punjab and Others - [1963] 14 STC 469 (Pun) Issues:1. Challenge to the imposition of purchase tax on old ornaments and scrap.2. Legality of the assessment order and demand for tax payment.3. Jurisdiction of the Assessing Authority for assessments beyond three years.4. Declining exemption from tax deposit by the Deputy Excise and Taxation Commissioner.Analysis:1. The petitioners challenged the imposition of purchase tax on old ornaments and scrap under the Punjab General Sales Tax Act, post its Amendment Act of 1958. The petitioners initially contested this tax but later withdrew the challenge based on a previous court decision. The court noted the amendment broadened the definition of 'turnover' to include 'purchase,' leading to the tax imposition on the old ornaments and scrap sold after removing alloy.2. The Assessing Authority assessed the taxable turnover and imposed sales and purchase tax on the petitioners. The petitioners disputed the assessment order, arguing it was illegal, unjust, and based on misinterpretation. They also criticized the demand creation process, citing lack of separate notices and assessment orders for each quarter during 1958-59.3. The petitioners raised concerns about the jurisdiction of the Assessing Authority to assess returns beyond three years from the date of assessment. The written statement argued that the limitation of three years only applied to best judgment assessments. The court clarified that the Assessing Authority did not proceed with a best judgment assessment in this case, eliminating the need to address the limitation issue.4. The Deputy Excise and Taxation Commissioner's refusal to grant the petitioners' request for exemption from tax deposit was challenged. The court upheld the decision, emphasizing the policy that revenue collection should not be delayed due to appeals. The appellate authority concluded that the tax payment was being unduly withheld without valid justification, highlighting the importance of timely tax payment for the welfare of the state.In conclusion, the court dismissed the petition, emphasizing the availability of statutory remedies for tax-related grievances and discouraging the misuse of constitutional writ jurisdiction as a substitute for statutory procedures. The court highlighted the importance of adhering to the prescribed procedures under the Punjab General Sales Tax Act and respecting the decisions of appellate tribunals.
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