BAL RAJ TULI, J. - (1.) THIS order will dispose of General Sales Tax References Nos. 30, 31 and 32 of 1971. G. S. T. R. No. 30 relates to the assessment year 1964-65, while G. S. T. R. Nos. 31 and 32 relate to the assessment year 1965-66.
(2.) THE facts are that the assessee, Messrs. South Punjab Electricity Corporation Ltd. now named as Rohtak Textile Mills Ltd. , Rohtak, is a public company registered under the Companies Act, with its registered office at Delhi. It is engaged in the business of manufacture and sale of cotton yarn and has its spinning mills, known as Mohan Spinning Mills, at Rohtak for the manufacture thereof. It is registered under the Punjab General Sales Tax Act as well as the Central Sales Tax Act, 1956, at Rohtak. It maintains sales office and godown at Delhi besides the one at Rohtak: For the assessment year 1964-65, the assessee showed gross turnover of Rs. 76,17,823. 15 out of which it claimed deductions amounting to Rs. 52,84,985. 61, as transfer of cotton yarn from the factory at Rohtak to its sales office at Delhi.
(3.) THE Assessing Authority examined the transactions relating to the deductions claimed from the account books, stock registers and other documents produced by the assessee and disallowed deductions to the tune of Rs. 22,72,399. 63 by order dated 6th September, 1966, a copy of which is annexure A to the statement of the case. Similarly, for the assessment year 1965-66, the assessee-company filed a return showing gross turnover of Rs. 1,08,37,571. 67, and claimed deductions to the tune of Rs. 93,50,775. 60, on account of transfers from the factory to the sales office at Delhi. The Assessing Authority perused the account books, stock registers and other documents produced by the assessee and after examining each transaction, disallowed the deductions to the extent of Rs. 30,73,778. 58. A copy of that order is annexure B to the statement of the case. Against those orders, the assessee preferred appeals which were dismissed by the Deputy Excise and Taxation Commissioner: vide orders dated 21st September, 1967, and 23rd September, 1967, copies of which are annexures C and D to the statement of the case. The matter was taken to the Excise and Taxation Commissioner in revision under Section 21 (1) of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as "the Act"), which were dismissed by order dated 20th December, 1968. A copy of that order is annexure E to the statement of the case. Against the order of the Excise and Taxation Commissioner, two appeals were filed before the Sales Tax Tribunal, which were dismissed by order dated 26th May, 1969, copy of which is annexure F to the statement of the case. Thereafter, two separate applications under Section 22 (1) of the Act were filed before the Tribunal for reference of the following questions of law to this Court for decision for the year 1964-65 and similar questions for the year 1965-66 by mentioning the appropriate amount in question No. (4): (1) Whether the findings arrived at by the Tribunal are based on evidence on the record of the case and are correct ? (2) Whether in deciding the case, the Tribunal was justified in taking into consideration extraneous circumstances and basing its decision thereon ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal has correctly construed the general terms and conditions of the contract entered into by the Delhi sales office with the purchaser ? (4) Whether, on the facts and in the circumstances of the case, the sales effected by the Delhi sales office amounting to Rs. 22,72,399. 63 could be considered as inter-State sales qua the State of Haryana and taxed as such? ;