ADVANCE BRICKS COMPANY versus ASSESSING AUTHORITY, ROHTAK & ANR.

ADVANCE BRICKS COMPANY versus ASSESSING AUTHORITY, ROHTAK & ANR.

The notification dated May 5, 1973 under section 18 of the Haryana General Sales Tax Act applies to sun-dried bricks. Both sun-dried and oven-baked bricks are included in the generic term 'brick'. However, while set-off of sales tax already paid on sun-dried bricks must be allowed against tax on subsequent sale of burnt bricks, total exemption from sales tax on the turnover of burnt bricks is not justified. The Taxing Officer is to verify if tax was paid and grant appropriate credit.

Parties
Appellant: Advance Bricks Company; Respondents: Assessing Authority, Rohtak & Anr.
Jurisdiction
India
Judgment Date
22 September 1987
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed in part; judgment of High Court set aside.
Legal Topics
Interpretation of 'brick' in Sales Tax Law, Set Off in Sales Tax, Tax on Sun Dried Versus Burnt Bricks
Sales Tax Commercial Law Interpretation of 'brick' in Sales Tax Law Set Off in Sales Tax Tax on Sun Dried Versus Burnt Bricks

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Parties

Advance Bricks Company

Appellant

Assessing Authority, Rohtak & Anr.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether sun-dried bricks are covered under the State Government notification dated 5th May, 1973 issued under section 18 of the Haryana General Sales Tax Act, 1973 for the purpose of levy of sales tax under section 15
  2. 2 Whether the appellant is entitled to deduction/set-off of sales tax paid on purchase of sun-dried bricks against tax payable on sale of burnt bricks

Ratio Decidendi

The notification dated May 5, 1973 under section 18 of the Haryana General Sales Tax Act applies to sun-dried bricks. Both sun-dried and oven-baked bricks are included in the generic term 'brick'. However, while set-off of sales tax already paid on sun-dried bricks must be allowed against tax on subsequent sale of burnt bricks, total exemption from sales tax on the turnover of burnt bricks is not justified. The Taxing Officer is to verify if tax was paid and grant appropriate credit.

Court Disposition

Appeal allowed in part; judgment of High Court set aside.

Orders

  • Taxing Officer to hear parties and determine if sales tax was paid on sun-dried bricks; credit to be given and only balance recovered.
  • Set-off of tax paid on sun-dried bricks to be allowed against tax exigible on burnt bricks.