K G KHOSLA AND CO PRIVATE LIMITED Vs. CHIEF COMMISSIONER DELHI

JUDGEMENT

(1.) The petitioner is a private limited company with its registered office and the head office in the Union territory of Delhi but its factory for making air compressors and garage equipments at Faridabad in the State of Haryana. The business of the petitioner in its own words is carried on as stated in paragraphs 3 and 27 of the writ petition namely:-

(2.) For the purposes of sales-tax, the petitioner is registered as a dealer both in the Union territory of Delhi and in the State of Haryana. The petitioner filed returns of sales-tax with the Sales-Tax authorities at Delhi inasmuch as the sale of goods manufactured in the factory was being effected from Delhi by the head office of the petitioner at Delhi. The salestax was also paid by the petitioner under the Bengal Finance (Sales Tax) Act, 1941 as extended to Delhi as if the sales effected by the petitioner were intra state sales effected within the Union territory of Delhi. On 24-11-1965, however, the Sales-Tax Assessing authority at Gurgaon in the then State of Punjab subsequently becoming the State of Haryana from 1-11-1966 under the Punjab Reorganisation Act, 1966, sent a notice to the petitioner under sections 11 and 14 of the East Punjab Central Sales Tax, 1948 and rule 33 made thereunder that in respect of the period commencing on 1-4-1961 and ending in the year 196465, the sales .made by the petitioner were liable to assessment. Therefore, the petitioner paid sales-tax to the Sales-Tax authorities at Delhi only upto 30-9-1965 Sales-tax thereafter has not been paid by the petitioner pending the decision of the rival claims of the Sales-Tax authorities at Faridabad and Delhi to assess the petitioner to-sales-tax. The first assessment of inter state sales-tax was made by the Assessing authority at Faridabad against the petitioner on 24-11-1965 as per Annexure to the writt petition. The petitioner filed an appeal against this order. The Deputy Excise and Taxation Commissioner of Ambala thereupon quashed the sa.id order on 20-4-1966 as per Annexure R-A and remanded the. case for trial on merits to the Assessing authority. Accordingly an assessment on merits was made by the Assessing authority at Faridabad on 30th March 1968 on the basis that the sales effected by the petitioner were inter state sales liable to be assessed to sales-tax under the Central Sale Tax. 1956, as per the Annexure at page 178 of the paper-book. An appeal against this order by the petitioner is said to be pending.

(3.) The case of the petitioner before the Assessing authority at Faridabad as stated in paragraph 6 at page 3 of the written statement prior to the order dated 24-11-1965, was also that "in the case of this company the goods are future goods be- cause the goods are manufactured only when there are orders received from the buyers and it has to be manufactured according to the specifications intimated by them."