Devi Dass Gopal Krishnan Vs State of Punjab

Petitioner: Devi Dass Gopal Krishnan

Defendant: State of Punjab

26 May 1972

1973 31 STC 536 P H

Statutes Referred:

Taxation Act

Excise Duty Act

Contempt of Court Act

Cases Referred:

Coal Co. Ltd. V. Member, Board of Revenue 1966 18 SCC 79

Kishan Chand v. S.K Jain 1965 16 SCC 521

Bidi Supply Co. v. Union of India 1956 29 ITR 717 SC

Facts of the Cases

  1. The petitioner is a registered dealer under the act and was also running the business of ginning of cotton and oil crushing in the moga, ferozepir district.
  2. So consecutively four years, the petitioner has filed the return file of the four years and have also paid the purchase tax accordingly in all the financial years. Which majorly includes:-
  • Oil and seed oil extraction or manufacturings
  • Tax levy on the commodities
  • Liability to pay the tax amount
  1. The assessing authority was also demanded Rs. 35,041.23 for the assessment basis under the supervision of the taxation commissioner, Jalandhar division as all the observations were made according to the order of the concerned authority officer.

Issues Raised

  1. Whether the purchase taxes be considered under the act?
  2. Whether the return filing of the commodities be applicable while filing?
  3. Whether the matter be prescribed under the act?

Parties Contention

Petitioner

  • The petitioner has filed the suit stating that the taxation laws were not appropriately applicable in the real scenario as the oil and seed oil sector fall under the large sectors of the industries and must file the return on the purchases made by the factory also.

Defendant

  • The defendant has also denied all the accusations which was made against him, according to him he has paid all the necessary taxes obeying all the rules and regulations to govern the system properly.

Judgement

  1. The court has decided that the industry manufacturing seed oil and oil shall fall under the act as they shall also pay the tax on the purchases as they are the raw materials which were used in the production cycle.
  • So according to the section 5 and sub section 11 of the act the industry fall under the rules on which the system will govern.

Rule of Law

The basic rule of law was applied here was that the act shall prevail on all types of industries whether the industry is small or large.

Comment

According to my personal opinion, the court has taken the appropriate decision in the matter of levying taxes on the puchases and the sales of the commodities.

Conclusion

To conclude the above case, the court has taken the appropriate decision according to the act which states that the tribunal must asses the plea according to the circumstances and indicating the sustainibilty of law.

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