- (1.) This is a bunch of five reference petitions, relating to assessment years 1980-81, 1981-82, 1982-83, 1983-84 and 1984-85, respectively, wherein the Sales Tax Tribunal, Punjab (for short, "the Tribunal") has referred the following question of law for opinion of this Court: Whether, in the facts and circumstances of the case, the assessee is entitled to the relief, claimed by him under Rule 29(xii) of the Punjab General Sales Tax Rules, 1949 on account of purchase value of furnace oil used as an aid to manufacturing iron and steel goods ?
(2.) The facts have been taken, as mentioned in the statement of case for the assessment year 1980-81, which form part of G.S.T.R. No. 9 of 1990.
(3.) The petitioner (hereinafter described as "the assessee") was a dealer engaged in the manufacture and sale of iron and steel. For the assessment year 1980-81, the assessee furnished its quarterly returns which were revised later on. Vide assessment framed on July 2, 1986, the claim of the assessee for deduction from turnover under Rule 29(xii) of the Punjab General Sales Tax Rules, 1949 (for short, "the Rules") on account of purchase value of furnace oil used in manufacture was allowed. Subsequently, on April 4, 1991, the revisional authority issued notice to the assessee under Section 21(1) of the Punjab General Sales Tax Act, 1948 (for short, "the Act") on the ground that deduction under Rule 29(xii) of the Rules had been allowed wrongly. Accordingly, the same was disallowed vide order dated June 24, 1991. Revision of the assessee before the Tribunal against the order passed by the revisional authority was dismissed vide order dated February 28, 1992 with the following observations: I have considered the arguments of both the parties and seen the record of the case. The main question involved in this case is whether furnace oil consumed by the applicant is directly used in the process of manufacturing purpose or not. Out of this issue, so many points arise. These are being considered/discussed and adjudicated here. Firstly, whether furnace oil purchased or used is an aid in manufacture and not as essential raw material. In this regard, I agree with the counsel for the State that furnace oil is used for ancillary purpose in the process of manufacturing. Mere inclusion of furnace oil in the registration certificate will not entitle the assessee to benefit and claim of deduction under Rule 29(xii) unless and until the items so purchased taxable at first stage have been directly used as raw material in the process of manufacturing of taxable goods for sale. The other plea of the counsel for the applicant is that it has been used as chemical and not as an energy has also no force. Neither it is borne by record nor it can be said as per the process of manufacturing involved." (sic);