- (1.) MESSRS. Bhatinda Chemicals and Vanaspati Private Limited, Bhatinda (hereinafter called "the petitioner-firm"), have filed this writ petition under Articles 226/227 of the Constitution of India, for issuance of a writ in the nature of certiorari for quashing three notices dated 24th February, 1982, issued by the Assessing Authority, 'd' Ward, Bhatinda, under Section 9 (2) of the Central Sales Tax Act, 1956 (for short "the Central Act"), read with Section 11 of the Punjab General Sales Tax Act, 1948 (for short "the Punjab Act"), for reassessment of the cases of the petitioner-firm, relating to the turnover on account of sale of rice bran oil in the course of inter-State trade and commerce, pertaining to the year 1978-79, 1979-80 and 1980-81 respectively.
(2.) THE facts that gave rise to the filing of this writ petition, briefly stated, are that the petitioner-firm is a manufacturer, among other oils, of the rice bran oil and it sells the same to registered dealer having their place of business in other States or Union Territories of India, on the basis of form C. This process is termed as sale in the course of inter-State trade and commerce. The Governor of Punjab vide notification dated 11th January, 1979, in exercise of powers conferred on him by Sub-section (5) of Section 8 of the Central Act, directed that; the tax payable by any dealer having his place of business in the State of Punjab in respect of the sales made by him, of edible oils from any such place in the course of inter-State trade or commerce to any registered dealer having his place of business in any other State or Union Territory in India, shall be calculated at the rate of one per cent of his turnover in so far as the turnover or any part thereof relates to such sales, subject to the production by him of declaration in form C as prescribed under Sub-section (4) of Section 8 of the Central Act. The petitioner-firm was paying sales tax at the rate of 1 per cent on the sale of rice bran oil in the course of inter-State trade and commerce to registered dealers having their places of business in other States or Union Territories. The other dealers and manufacturers in rice bran oil in the State of Punjab are also paying sales tax at the rate of 1 per cent on such inter-State sales. The petitioner-firm filed returns and paid tax at this rate in the years 1978-79, 1979-80 and 1980-81. They were accepted and the petitioner-firm was assessed on that basis. (Copies of the assessment order in these years have been appended as annexures P-2, P-3 and P-4 respectively ).
(3.) THE Excise and Taxation Commissioner, Punjab, wrote a letter dated 4th February, 1982, to all the Assistant Excise and Taxation Commissioners (who are the Assessing Authorities) in connection with the taxability of rice bran oil in the course of inter-State trade and commerce. It has been mentioned therein that rice bran oil is not edible oil as is presently manufactured in the State of Punjab and only a negligible proportion of this oil falls in the category of edible grade oil. Since rice bran oil produced in Punjab is not of edible grade the same should be taxed at the general rate, i. e. , at the rate of 4 per cent on the sale of rice bran oil in the course of inter-State trade and commerce to dealers of other States against C forms. It was suggested that thorough scrutiny be made on the cases in the light of facts enumerated in the said letter before finalising assessment in such cases. It was desired that all assessment of pending cases be finalised in the light of these instructions within the current financial year. (A copy of this letter is annexure P-5, appended to the petition ). Presumably, after receipt of this letter, the Assessing Authority issued the impugned notices, annexures P-6, P-7 and P-8 to the petitioner-firm, intimating that in consequence of definite information in his possession, the Assessing Authority had reasons to believe that the turnover on account of inter-State sale of rice bran oil had been assessed at the rate of 1 per cent as an edible oil. This was exigible to sales tax at the rate of 4 per cent as an inedible oil. The petitioner was required to show cause why action should not be taken against them. Aggrieved by these notices, the petitioner has filed the present petition.;