Shree Ganesh Oil and Cotton Factory vs State of Punjab

M.M. Kumar, J.—This order shall dispose of three GSTR Nos. 15 to 17 of 1999 and GSTR Nos. 6 and 7 of 2002 as common question of law has been raised in all these petitions. For the purposes of this order, facts are being taken from GSTR No. 15 to 17 of 1999.

At the instance of the dealer-assessee the Sales Tax Tribunal, Punjab has allowed the application u/s 22 of the Punjab General Sales Tax Act,1948 after recording the finding that following two questions of law would emerge from the order dated 26.6.1998 passed by it in Revision No. 14 of 1997-98 for the assessment year 1990-91:

1.Whether in the facts and circumstances of the case, provisions of Section 4B are attracted when a part of by product i.e. oil cakes, was sent outside the State of Punjab for sale on consignment basis and the entire oil and rest of the oil cakes (produced from cotton seeds purchased within the State of Punjab) were sold within the State of Punjab ?

In case the reply to question number 1 is in affirmative, is tax u/s 4B not leviable in respect of oil cakes sent for sale outside the State on the basis of the proportion of the value of the oil cakes vis a vis rest of the sales or on the proportionate price of cotton seeds based on yield percentage of oil and oil cakes produced from cotton seeds?.

At the outset it has been pointed out by the learned State counsel that both the questions of law were subject matter of consideration of this Court in the case of M/s Krishna Oil and General Mills v. State of Punjab GSTR No. 63 of 1997 which has been decided on 22.1.2009. The aforesaid statement of the learned State counsel could not be successfully controverted by Mr. K.L. Goyal, learned Counsel for the petitioner. He has stated that as both the questions have been decided, the reference be answered in terms of the decision rendered in Krishna Oil and General Mills case (supra).

In view of the above, the questions of law are answered in terms of the decision rendered in Krishna Oil and General Mills case (supra) A copy of this order be placed on the file of connected cases.