Prem Chand Pandit, J. - (1.) This order will dispose of two connected Sales Tax References Nos. 16 and 17 of 1972. The year of assessment is 1957-58. The first reference is under the Punjab General Sales Tax Act, 1948, hereinafter called the Punjab Act, and the other is under the Central Sales Tax Act, 1956, hereinafter referred to as the Central Act.
(2.) On 28th October, 1970, a Bench of this Court directed the Sales Tax Tribunal, Punjab, to refer the following two questions of law for our opinion: (1) Whether, in the circumstances of the case, the medicinal preparations given to the named patients on his own prescriptions by a registered medical practitioner amounts to a manufacture of medicine and pharmaceutical preparations? (2) Whether the petitioner is a 'dealer' within the provisions of the Punjab and Central Acts and the medicines prepared on his own prescriptions and delivered to his own patients who actually consult him amount to 'sale' within the meaning of the Punjab and the Central Acts?
(3.) The assessee is an ayurvedic practitioner and the proprietor of Messrs. Navratna Kalpa Pharmacy, Jullundur. He tours throughout India and after seeing the patients gives them medicines prepared by him. The bills issued to them generally show separately the amount of consultation fee, the price of the medicines and other incidental charges, including the postage expenses. Returns were filed by him both under the Punjab and the Central Acts. Certain deductions were claimed by him and under the Punjab Act they were allowed in respect of sales made during tours outside the State and in foreign countries. As regards the Central Act, deductions regarding consultation fee was not allowed, because, according to the Assessing Authority, the same "had been poted in the relevant register according to the whims and wishes of the assessee himself". Besides, the assessee could not produce the forwarding letters sent along with the V.P.P. parcels, indicating the charges for medicines as well as the consultation fee separately. The assessments for the year 1957-58 under both the Acts were made by the Assessing Authority on 13th November, 1959.;