- (1.) THE assessment of sales tax under the Punjab General Sales Tax Act (46 of 1948) (hereinafter called the Sales Tax Act) on the sale of Indian-made foreign liquors known as beer, wine and rum during the assessment year 1966-67, by the petitioner-company at its hotel known as Oberoi's Mountview Hotel, Chandigarh, under the order of the Assessing Authority, Chandigarh, dated 18th September, 1971 (annexure A), has been called in question by the petitioner-company who is running the said hotel on the following two grounds : (i) Since the relevant entry (entry 37) in Schedule B to the Sales Tax Act exempts all goods on which duty is or may be levied under the Punjab Excise Act, 1914 (hereinafter referred to as the Excise Act), the exception carved out of the field covered by the said exemption, namely, "indian-made foreign liquor" on which duty is or may be leviable not having been mentioned in column 2 but in column 1 of Schedule B, no liability to pay sales tax in connection with the sale of such liquor has been lawfully imposed in view of the provision of Section 6 of the Sales Tax Act; and (ii) beer is not "indian-made foreign liquor" within the meaning of that expression used in entry 37 of Schedule B to the Sales Tax Act as amended with effect from 1st October, 1966.
(2.) SECTION 4 of the Sales Tax Act (which is the charging section) provides that every dealer (subject to certain exceptions which are not relevant for us) whose gross turnover in a year exceeds the taxable quantum, shall be liable to pay tax on all sales effected by him. The petitioner admittedly falls within the definition of "dealer" as contained in Section 2 (d) of the said Act. Sub-section (1) of Section 6 is in the following terms : No tax shall be payable on the sale of goods specified in the first column of Schedule B subject to the conditions and exceptions, if any, set out in the corresponding entry in the second column thereof and no dealer shall charge sales tax on the sale of goods which are declared tax-free from time to time under this section.
(3.) ENTRY 37 in Schedule B as it existed at the time of the enactment of the Sales Tax Act in 1948, and the changes which it underwent by its subsequent amendment with effect from 1st October, 1966, and a still later amendment dated 10th January, 1968, is quoted below : "schedule B Entry number Column 1 Column 2 37. (as the entry existed from 1948 All goods on which duty is or may Blank till 30th September, 1966, be levied under the Punjab Excise Act, 1914, or the Opium Act, 1878. 37. (as amended by Punjab Govern- All goods except Indian-made Blank. " ment Notification No. SO-213- foreign liquor on which duty is or P. A. 46/48/s. 6/66 dated 30th may be levied under the Punjab September, 1966, with effect Excise Act, 1914, or the Opium from 1st October, 1966 ). Act, 1878. 37. (as amended by the Chandigarh All goods except foreign liquor as Administration Notification defined in sub-paragraph (2) of No. 8864-UTF 11 (6)67/779 paragraph 2 of the Punjab Excise dated 10th January, 1968 ). Liquor Definitions, 1954, on which duty is or may be levied under the Punjab Excise Act, 1914, or the Opium Act, 1878.;