TaxTMI 
TaxTMI 
2012 (1) TMI 153
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....ecoverable in respect of spirit exported to other States or Union Territories in India, forms part of turnover and is liable to sales tax having regard to the provisions of the Punjab Excise Act, Punjab Excise Fiscal Orders, 1932, Punjab Liquor Permit and Pass Rules and Punjab Distillery Rules? (3) Whether, in the facts and circumstances of the case, the Tribunal is right in law in holding that notice issued under section 11(2) of the Punjab General Sales Tax Act was valid in law and covered the period of assessment? (4) Whether, in the facts and circumstances of the case, the Tribunal was right in law in framing assessment at the rate of four per cent having regard to the notification dated April 6, 1973, December 20, 1973 and July 3, 1975 issued under section 4B of the Punjab General Sales Tax Act?" 2. Briefly stated the facts necessary for adjudication of the present reference are that the petitioner-Jagatjit Industries Ltd. is engaged in manufacture and sale of country liquor, Indian-made Foreign liquor, Malt and Beverages, etc., and is holding requisite licences. The company is registered as dealer under the Punjab General Sales Tax Act, 1948 (in short "the Act") and ....
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....TC 598 (SC) and of this court in Punjab Breweries Limited, Ludhiana v. State of Punjab [1999] 112 STC 314 (P&H); [1998] 12 PHT 351 (P&H), it was argued that the bottles which were purchased by the petitioner being packing material they had to be charged at the same rate as the contents thereof and since the country liquor itself was exempt, no purchase tax was leviable on the bottles as well. It was also argued that the appellate authority was not competent to set aside order of the assessing authority on an issue against which no appeal or revision had been filed by the Department and remand the matter for decision afresh. He relied upon the judgment of this court in State of Haryana v. Frick India Ltd. [1990] 76 STC 148 (P&H), the Allahabad High Court in Sabharwal Brothers v. Commissioner, Sales Tax, U.P. [1990] 76 STC 41 (All) and of the apex court in National Aluminium Co. Ltd. v. State of A.P. [2008] 14 VST 351 (SC) and State of Kerala v. Vijaya Stores [1978] 42 STC 418 (SC); [1979] 116 ITR 15 (SC). According to the learned counsel, the remand by the DETC(A) and as modified by the Tribunal was unwarranted. 6. Urging question No. 2, learned counsel for the petitioner submitt....
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.... the manufacturer and, therefore, formed part of taxable turnover. 10. As regards question No. 4, it was submitted that the respondent-State vide notification dated April 6, 1973 had provided that purchase of goods by dealers liable to pay tax under the Act shall be at the rate which the tax is payable on the sale thereof and the rate of tax on the purchase of such goods shall be three paise in a rupee on the purchase value thereof. Thereafter, the said notification was superseded by notification dated December 20, 1973. The State issued notification dated July 3, 1975 wherein under the proviso it was provided that for the words "three paise", the words "four paise" had been substituted in notification dated April 6, 1973. However, later on realising its mistake that notification dated April 6, 1973 had already been superseded by notification dated December 20, 1973, a corrigendum notification dated June 19, 1979 was issued providing that in notification dated July 3, 1975, FOR "S.O.19/T.A.46/48/S.4-B/73, dated the April 6, 1973" READ "S.O.89/P.A.46/48/ S.4-B/73, dated the December 20, 1973". According to the learned State counsel, the validity of the notification cannot be chal....
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....appellate authority challenging the additions made by the assessing authority. The appellate authority did not agree with the contentions of the assessee and consequently held that there was no force in the appeal and rejected the same. The appellate authority went further and held that transfer of goods allowed for Delhi by the assessing authority was not in order and claim regarding exports out of territory of India to the tune of Rs. 4,70,997.30 had been erroneously allowed and remanded the case to the assessing authority to have fresh examination of each item of deduction claimed and allowed. The High Court in those facts examining the scope of powers of appellate authority had held that on an appeal by the assessee, the appellate authority did not have jurisdiction to go into matters not raised in the appeal. 14. The Allahabad High Court in Sabharwal Brother's case [1990] 76 STC 41 (All) was considering a case where the penalty proceedings initiated by the Sales Tax Officer under section 15A(1)(h) of the U. P. Sales Tax Act was held to be not leviable, but could the case of the assessee be placed under some other clauses to impose penalty. Under the circumstances, it wa....
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....e Punjab under section 21 of the Punjab Excise Act receive a requisition for the export-in-bond in spirit to any other State or Union Territory in India, the person importing the spirit shall obtain and send to the manager an import-in-bond permit signed by the Collector or Chief Excise Authority of the District, State or Union Territory of destination, respectively, for supply of such spirit. (b) The manager of the distillery shall act as an agent for the supply of such spirit, to any other State or Union Territory in India. (c) and (d) . . ." Para 1B of 1932 Orders "1B. A manufacture and export duty at the rate of one rupee and twenty paise per proof litre, shall be levied on export of all duty paid or under bond issues of country liquor, and Indian-made Foreign Liquor other than rectified spirit, denatured spirit or industrial alcohol to any other State or Union Territory in India from any distillery, wholesale vend or warehouse in the State of Punjab: Provided that the manufacture and export duty on rectified spirit shall be at the rate of two rupees per proof litre: Provided further that the manufacture and export on Indian-made beer shall be at the rate of t....
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....bligation for meeting the burden. We do not propose, however, to examine this aspect any further for the change in rule 76 of the Distillery Rules has clearly affirmed the position that liability for payment of excise duty is of the manufacturer. The provisions of rules 80, 81, 82, 83 and 84 do not militate against the conclusion that the payment of excise duty is a liability exclusively of the manufacturer. In these rules detailed provisions have been made regarding obtaining of distillery pass, correct calculation and full payment of excise duty, the manner of depositing such duty and ultimately issue of the spirit under the pass from the distillery. These rules, therefore, do not detract from the position that payment of excise duty is the primary and exclusive obligation of the manufacturer and if payment be made under a contract or arrangement by any other person it would amount to meeting of the obligation of the manufacturer and nothing more." 21. In the light of the aforesaid pronouncement, learned counsel for the petitioner cannot derive any benefit from the judgments cited by him. Consequently, the answer to question No. 2 is against the dealer. Question No. 4: 2....