- (1.) WHETHER "transmission rubber belting" is exempt from the incidence of sales tax by virtue of item 30-B of Schedule B to the Punjab General Sales Tax Act, 1948, is the issue which has now been sought to be reagitated in this set of five connected writ petitions. Learned counsel for the petitioner agree that the question of law being identical this judgment, will govern all of them.
(2.) BEFORE adverting to the aforesaid question, it may be noticed at the outset that in some of the writ petitions two preliminary questions on the point of limitation had arisen when these cases first came up before a Division Bench. Considering the conflict of authority, these two questions were referred for decision by the order dated 21st February, 1979, to a larger Bench. Consequent thereto the Full Bench returned the answer to the legal issue of limitation and sent the case back for decision on merits.
(3.) THOUGH the question before us is pristinely legal it is nevertheless apt to give the background of facts from those in C. W. P. No. 302 of 1978. Messrs. Northern India Rubber Mills deal in the sale and supply of "transmission rubber belting" and have been registered dealers under the Punjab General Sales Tax Act, 1948 (hereinafter called the Act ). In the quarterly return filed by the petitioners for the assessment year 1973-74 they claimed that the "transmission rubber belting" was tax-free under Section 6 being covered by item 30-B of Schedule B to the Act. However, the Assessing Authority did not accept this plea holding that the "transmission rubber belting" was not covered by item 30-B of the Act. An appeal was carried against the order of the Assessing Authority to the Deputy Excise and Taxation Commissioner, Jullundur, who also upheld the stand of the revenue that the "transmission rubber belting" was taxable. Further appeal being carried to the Punjab Sales Tax Tribunal met the same fate on the finding that the goods were not covered by item 30-B of Schedule B to the Act. In holding so the Tribunal implicitly followed the Division Bench judgment of this Court in Laxmi Machinery Store v. State of Punjab [1977] 39 S. T. C. 87.;