Binding precedent on sugarcane purchase tax defeated the assessee's challenge to the levy under Punjab VAT law.

Purchase tax on sugarcane under the Punjab Value Added Tax Act was sustained because the controversy had already been decided against the assessee in an earlier binding judgment, which itself followed the Supreme Court's ruling on the same issue. The HC held that it could not depart from that precedent and rejected the attempt to distinguish the levy by reference to other enactments or Article 266 of the Constitution. The challenge therefore failed, and the levy of purchase tax was upheld.

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Issues: Whether the assessee's challenge to purchase tax on sugarcane under the relevant tax legislation could succeed in view of the binding earlier decision covering the same controversy.

Analysis: The appeals arose under Section 68 of the Punjab Value Added Tax Act, 2005 and concerned levy of purchase tax on sugarcane for the assessment year in question. The dispute had already been concluded against the assessee by an earlier decision of the same Court, which followed the Supreme Court's binding ruling on the issue. The Court held that it could not take a different view from the one already adopted in the earlier precedent and declined to accept the assessee's attempt to distinguish the matter on the basis of other enactments or on Article 266 of the Constitution of India.

Conclusion: The issue was decided against the assessee and the levy of purchase tax was upheld.

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