Export sales excluded from notional sales tax computation; purchase tax on levy paddy remained payable under settled Supreme Court principle.

Purchase tax on paddy included in the levy price was held payable by the dealer, as the binding Supreme Court principle required such tax to be deposited in the Government exchequer and barred retention by the dealer under the doctrine against unjust enrichment. Export sales, however, were held not to be includible when computing notional sales tax liability under rule 28A(2)(n) read with rule 28A(4)(a), because that scheme contained no deeming fiction comparable to rule 28B(3)(m). The writ petition therefore succeeded only on the export-sales issue, and the matter was remitted for fresh decision after hearing the dealer.

---

---

Issues: (i) Whether the dealer was liable to pay purchase tax on paddy included in the levy price paid to the District Food and Supply Commissioner. (ii) Whether export sales were includible for computing notional sales tax liability under the exemption scheme.

Issue (i): Whether the dealer was liable to pay purchase tax on paddy included in the levy price paid to the District Food and Supply Commissioner.

Analysis: The issue was covered by the binding decision of the Supreme Court, which held that the purchase tax collected in such circumstances was required to be deposited in the Government exchequer and could not be retained by the dealer. The principle against unjust enrichment applied.

Conclusion: The issue was decided against the assessee.

Issue (ii): Whether export sales were includible for computing notional sales tax liability under the exemption scheme.

Analysis: The relevant scheme required the limit of exemption to be worked out on the basis of the notional sales tax liability under rule 28A(2)(n) read with rule 28A(4)(a). The Court distinguished the analogous provision in rule 28B(3)(m), where export sales were specifically brought within the deeming fiction, and held that no such deeming inclusion existed under rule 28A(2)(n). On that construction, export sales could not be added while calculating the notional tax liability.

Conclusion: The issue was decided in favour of the assessee.

Final Conclusion: The writ petition succeeded only to the extent that export sales had to be excluded from the computation of notional sales tax liability, and the assessment was sent back for fresh decision after hearing the assessee-dealer.

Ratio Decidendi: Export sales are not includible in the computation of notional sales tax liability under rule 28A(2)(n) of the Haryana General Sales Tax Rules, 1975 unless the relevant statutory provision expressly creates a deeming inclusion.

---