1982 (12) TMI 160

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....in agricultural implements including monoblock centrifugal pumping sets. They are registered dealers under the *Reported as Paul Electric Company v. The Assistant Excise and Taxation Commissioner (Inspection) Amritsar [1980] 46 STC 504.   Punjab General Sales Tax, Act 1948 (for short "the Punjab Act"). They used to deduct the turnover of sales of monoblock pumping sets from their gross turnover during the year and used to pay sales tax on the taxable turnover. The authorities used to accept this position. However on the advice of the State Government, the Excise and Taxation Commissioner issued a letter No. STI/79/879 dated 9th April, 1979, to all the Assistant Excise and Taxation Commissioners in the State of Punjab, who are the....

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....axable turnover is defined in sub-section (2) of section 5 of the Act to mean that part of the dealer's gross turnover during a year which remains after deducting therefrom his turnover on the sale of goods declared tax-free under section 6 of the Act. Section 6 of the Act lays down that no tax is payable on the sale of goods specified in the first column of Schedule B subject to the conditions and exceptions set out in the corresponding entry in the second column thereof. The dealer cannot charge sales tax on the sale of goods declared "tax-free". Item No. 34 in Schedule B enumerates agricultural implements which have been declared "tax-free". Centrifugal pumps find mention therein and the sale thereof is not liable to sales tax. A monoblo....

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....ound out that the part comprising the pumping set in the monoblock has a different shape from the combining side, than that of centrifugal pumps sold independently, and therefore, the assessee could not manipulate accounts by using single bill for sale of two items separately ........." No appeal or revision was filed against this order. Annexure P-3 is another order appended to this very appeal. It has been observed therein by the Deputy Excise and Taxation Commissioner, Jullundur: "...monoblock pumping sets are centrifugal pumps that are coupled with electric motors. Since these are monoblock pumping sets, they are included in the term 'centrifugal pumps' and are exempt under item No. 34 of Schedule B." The State filed an additional....