M/S JAGATJIT SUGAR MILLS ETC. versus STATE OF PUNJAB AND ANR.

M/S JAGATJIT SUGAR MILLS ETC. versus STATE OF PUNJAB AND ANR.

The purchase of sugarcane, though exempt on sale by the grower under Section 6 when sold by the grower himself, is nevertheless liable to purchase tax in the hands of the purchasing dealer (the sugar mill) under Section 4(1) of the Punjab General Sales Tax Act, 1948, since Section 6 does not exempt purchase. Section 4-B does not apply to Schedule-B goods; the charging provision is Section 4(1) itself.

Parties
Petitioner: Jagatjit Sugar Mills Co. Ltd.; Respondent: State of Punjab; Respondent: Assessing Authority, Sales Tax, Kapurthala
Jurisdiction
India
Judgment Date
04 October 1994
Procedural Posture
Writ Petition (civil) Under Article 32 of the Constitution of India / Final Judgment on Merits
Outcome
Petitions dismissed with costs.
Legal Topics
Sales Tax, Purchase Tax, Exemption of Agricultural Produce, Interpretation of Tax Statutes
Tax Law Constitutional Law Sales Tax Purchase Tax Exemption of Agricultural Produce Interpretation of Tax Statutes

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Parties

Jagatjit Sugar Mills Co. Ltd.

Petitioner

State of Punjab

Respondent

Assessing Authority, Sales Tax, Kapurthala

Respondent

Procedural Posture

Writ Petition (civil) Under Article 32 of the Constitution of India / Final Judgment on Merits

Legal Issues

  1. 1 Whether the purchase of sugarcane by the petitioner-mill from cane growers and co-operative societies is liable to purchase tax under the Punjab General Sales Tax Act, 1948.
  2. 2 Whether sugarcane, being agricultural produce and exempted from sales tax on sale by the grower under Section 6 read with Schedule-B, is also exempt from purchase tax.

Ratio Decidendi

The purchase of sugarcane, though exempt on sale by the grower under Section 6 when sold by the grower himself, is nevertheless liable to purchase tax in the hands of the purchasing dealer (the sugar mill) under Section 4(1) of the Punjab General Sales Tax Act, 1948, since Section 6 does not exempt purchase. Section 4-B does not apply to Schedule-B goods; the charging provision is Section 4(1) itself.

Court Disposition

Petitions dismissed with costs.

Orders

  • Writ petitions are dismissed with costs quantified at Rs. 10,000 consolidated to the respondent.
  • The interim orders in the writ petitions are vacated.