STATE OF M P Vs. PATEL SAW MILLS

JUDGEMENT

(1.) THIS is an application filed by the State of Madhya Pradesh under section 44 (2) of the M. P. General Sales Tax Act, 1958 (for short, "the Act"), to direct the Appellate Tribunal (Board of Revenue), to make a reference on the question of law arising out of the proceedings before the statutory authorities.

(2.) FIRST respondent is a dealer registered under the Act. The relevant period of assessment is November 12, 1977 to October 31, 1978. The first respondent is a timber merchant and was assessed for the above period. The sales tax authority and the appellate authority rejected the claim of the first respondent for set-off under rule 20-A of the M. P. General Sales Tax Rules, 1959 (for short, "the Rules" ). In further appeal, the Board held that the first respondent is entitled to set-off of surcharge from the sales tax liability. The Board declined to make a reference under section 44 (1) of the Act at the instance of the Revenue. Hence this application.

(3.) THE question of law which arises is whether a dealer is entitled to claim set-off of surcharge amount from sales tax dues under rule 20-A even though rule 20-A of the Rules has lost statutory support by amendment introduced to section 7-B of the Act with effect from May 1, 1977 and if the dealer is not entitled to surcharge, what would be the correct rate of tax ? We direct the Board of Revenue to state the case and make a reference accordingly. Petition is allowed. Petition allowed. .