Rebate denial and related interest and penalty orders set aside, with fresh assessment directed on purchase evidence and bill compliance.

Orders denying rebate, together with the consequential interest and penalty orders, were set aside and the matter was remitted to the assessing authority for fresh adjudication. The authority was left free to re-examine the evidence supporting the claim that the appellants had purchased the boulders from the quarry owners, and to test the bills produced by the appellants against Rule 41 of the Haryana General Sales Tax Rules, 1975. The State accepted that the earlier grounds for denying rebate would not be pressed again, and the appellants were given liberty to challenge any adverse view taken in the fresh proceedings.

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Issues: Whether the orders denying rebate and the consequential orders of interest and penalty were liable to be set aside and the matter restored to the assessing authority for fresh adjudication, with the evidence of purchase and the compliance of the quarry owners' bills with Rule 41 of the Haryana General Sales Tax Rules, 1975 to be examined afresh.

Analysis: The State accepted that the grounds earlier taken to deny rebate would not be pressed again before the sales tax authorities. The assessing authority was, however, left free to examine the evidence produced in support of the claim that the appellants were the purchasers of the boulders from the quarry owners. It was also left open to the authority, if so advised, to test the bills produced by the appellants against Rule 41 of the Haryana General Sales Tax Rules, 1975, and the appellants were given liberty to challenge any adverse view taken in subsequent proceedings.

Conclusion: The impugned orders were set aside and the matter was remitted to the assessing authority for passing fresh orders in accordance with the directions recorded.

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