Pathak, J. - (1.) These appeals by special leave are directed against the judgment of the High Court of Punjab and Haryana disposing of four references under the Punjab General Sales Tax Act, 1948.
(2.) The respondent firm, Messrs Amrit Roller Flour Mills, carries on business at Chandigarh. It is registered as a dealer under the Punjab General Sales Tax Act, 1948 (hereinafter called the "Act"). It holds a licence under the Wheat Roller Flour Mills (Licensing and Control) Order, 1957 (hereinafter referred to as the "Control Order"). Wheat is supplied to the respondent under the orders of the Government of India. The respondent grinds the wheat and supplies the atta, maida and suji emerging from that process to the holders of permits issued by the District Food and Supplies Officer under the Control Order.
(3.) The respondent was assessed for the years 1964-65 to 1967-68 to sales tax under the Act on the turnover of the supplies effected by it. During the assessment proceedings it contended that the transactions entered into by it did not constitute sales within the meaning of the Act and consequently no sales tax could be levied. The contention was rejected. The assessing authority relied on Excise and Taxation Officer (Assessing Authority), Hissar Jaswant Singh (1971) 27 STC:582. The assessment orders were maintained in appeal and thereafter in second appeal also. At the instance of the assessee, the High Court called for a reference on the following question of law-in each of the four cases: "Whether on the facts and in the circumstances of the case, the sale of wheat products against permits issued by the District Food and Supplies Controller, Chandigarh, is liable to be taxed under the Pun jab General Sales Tax Act, 1948 - The High Court referred to the, provisions of S. 3 of the Essential Commodities Act, 1955, under which the Control Order had been issued, and to clause V of the Licence:under which the respondent carried on his business, and holding that the respondent was obliged to follow the instructions of the concerned authority in regard to the purchase of wheat, or the extraction of maida, suji and rawa as well as in regard to the distribution and disposal of such products, the High Court took the view that there was no sale. In adopting that view the High Court preferred to follow its decision in Food Corpn. of India v. State of Punjab (1976.) 38 STC 144 (Punj).;