1989 (4) TMI 280

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... R.S. PATHAK, C.J.I.-These appeals arise out of writ petitions filed in the High Court of Punjab and Haryana challenging assessments made under the Punjab General Sales Tax Act. The facts obtaining in these appeals are materially similar, and therefore the facts set forth in State of Punjab v. Aryavarta Industries (Civil Appeals Nos. 409 to 467 of 1975), which was treated as the leading case in the High Court need alone be stated. The respondent Messrs. Aryavarta Industries P. Ltd. carries on business in the State of Punjab at Abohar in the district of Ferozepore. The business consists of purchasing unginned cotton, and after ginning it selling the ginned cotton. The respondent also purchases cotton as a commission agent for other ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e or purchase of declared goods at any stage other than either of the two stages referred to earlier. For the assessment year 1966-67 the respondent filed his returns under the Punjab Act as it stood before its amendment in 1967. In the returns, the total purchase of unginned cotton were shown and the total sales of ginned cotton and cotton seeds were claimed as deductions from the gross turnover under section 5(2)(a)(vi) of the Act on the ground that the purchase tax under the unamended Act was to be imposed on the first purchaser of the goods mentioned in Schedule C to the Act. It was contended that such a dealer could claim deductions under section 5(2)(a) of the Punjab Act, and he was entitled to a deduction in respect of the purchas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the seeds so separated could not be identified as part of the cotton itself. This Court took the view that the assessing authority was right in holding that the turnover of cotton seeds could not be deducted when sold to registered dealers. The respondents filed writ petitions in the High Court and the learned single judge of the High Court allowed the writ petitions and quashed the assessment orders. Letters Patent Appeals filed by the State of Punjab were dismissed by the Division Bench of the High Court. The Division Bench observed that after the sale to the registered dealers, no part of the unginned or the ginned cotton remained with the respondents, and therefore the respondents could not be said to be the last purchasers of cotto....