- (1.)THIS appeal is directed against the judgment and order passed by the High Court of Jammu and Kashmir in O.W.P. No. 633 of 1998, dated 05.10.2001, whereby and whereunder the High Court has dismissed the Writ Petition filed by the Appellant -assessee as being devoid of any merit. Short facts of this case are: the Appellant herein is a partnership firm with its head office at Srinagar in the State of Jammu and Kashmir and branch office at New Delhi. The Assessee is engaged in the business of manufacture and sale of finished products from raw hides and skin. The Assessee purchases raw skins in Srinagar and dispatches them to New Delhi for manufacture of finished products and subsequently, effects the sale of such products in New Delhi.
(2.)THE Appellant is a dealer registered under the provisions of the Jammu and Kashmir Sales Tax, 1962 (for short 'the Act') and also the Central Sales Tax Act, 1956.
(3.)THE State Government in exercise of its powers under Section 5 -A of the Act has issued two notifications dated 15.10.1997 and 30.05.1998, respectively. By the first notification, the State Government has permitted the dealers dealing in hides and skins to pay an amount of Rs. 6.50 per skin by way of composition and by the second notification, the State Government has enhanced the composition rates prescribed under the first notification.
The tax liability to the tune of Rs. 4,00,000/ - was levied on the Assessee under the Act by virtue of the first notification which was paid by the Assessee.