1991 (3) TMI 374

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....er section 4-B of the Punjab General Sales Tax Act, 1948, at Rs. 71,974 and also charged interest of Rs. 23,466 and penalty of Rs. 15,000 for late deposit of tax. The petitioner filed appeal against the imposition of interest and penalty. The appellate authority sustained the penalty to the tune of Rs. 10,000 vide order dated December 27, 1989, annexure P 2.   In the meantime the Supreme Court struck down the provisions of Haryana General Sales Tax Act, 1973, as ultra vires the State Legislature, in Good year India Ltd. v. State of Haryana [1990] 76 STC 71. Thereafter, the petitioner has filed the present writ petition under articles 226 and 227 of the Constitution of India. The case of the petitioner-company is that the provisio....

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....s a purchase tax is actually a tax on the consignment of the manufactured goods. Therefore, even though the language of section 4-B of the Act is not identical with the relevant part of section 9(1) of the Haryana Act, it is in substance similar in certain respects, particularly in respect of the point of time when the liability to pay tax arises. Under that provision, as here, the liability to pay purchase tax on the raw material purchased in the State which was consumed in the manufacture of any other taxable goods arose only on the despatch of the goods outside the State. We are, therefore, of the opinion that the ratio of the said decision of this Court in Goodyear India Ltd. [1990] 76 STC 71; AIR 1990 SC 781, applies on all fours to th....