A.N. Grover, J. - (1.) THIS is an appeal under Clause 10 of the Letters Patent against the judgment of learned Single Judge dismissing a petition under Article 226 of the Constitution by which certain assessment orders relating to levy of sales tax on the Petitioner were sought to be quashed.
(2.) THE Petitioner firm has its head office at Patiala and its branches at Ludhiana and Jullundur. Its branches consists, among others of catering and providing food and lodging to the customers. It was registered under the Pepsu Sales Tax Ordinance, 2006, Bk, and it continues to be so registered under the Punjab General Sales Tax Act, No. 46 of 1948 (hereinafter called the Act). In paragraph 3 of the petition it is alleged that the Petitioner firm serves Indian dishes and food preparations to its customers, e.g., vegetables, meat preparations, curd and curd preparation, etc., which are ordinarily prepared and served by Tandoor -walas, Lohwalas and Dhabwalas. They also serve tea and sweets, etc., as are prepared by the Halwais. In February, 1957, the Punjab General Sales Tax (Extension) Ordiance, 1957, was promulgated whereby the Act, as it then stood, was extended to the territories comprising the erstwhile State of Pepsu. Section 6(1) provided that no tax shall be payable on the sale of goods specified in the first column of the Schedule. Prior to 10th July, 1954 entries Nos. 49 and 50 of the Schedule were as follows: JUDGEMENT_16_LAWS(P&H)7_1963.htm By a notification dated 10th July, 1954 issued by the Governor of the Punjab in exercise of powers conferred by Section 6(2) of the Act and published in the Gazette dated 23rd July, 1954 these items were substituted by the following entries. JUDGEMENT_16_LAWS(P&H)7_19631.htm
(3.) RESPONDENT No. 1, who is the assessing authority under the Act, assessed the Petitioner firm in respect of the year 1957 -58. A liability in the sum of Rs. 5,277.06 nP. was created. Proceedings for prosecution of the Petitioner under Section 23(1)(b) of the Act for alleged default in filing the quarterly returns relating to the year 1957 -58 were also started and ultimately a fine of Rs. 100 was imposed by the Magistrate 1st Class, Patiala, on 10th May, 1960 for this offence.;