Punjab General Sales Tax Rules, 1949

The State of Punjab appealed against the judgment of the Punjab and Haryana High Court which had allowed M/s Perfect Synthetics to deduct the purchase value of raw material from its taxable turnover under Rule 29(xii) of the Punjab General Sales Tax Rules, 1949. The assessee bought raw material from units that were exe…

The appeal concerned the interpretation of Rule 29 (xii) of the Punjab General Sales Tax Rules, 1949, which deals with deduction from taxable turnover. The State of Punjab contended that such a deduction was impermissible, while Mis. Sankeshwar Hosiery Industry argued for its permissibility. The Court examined the lang…

The respondents, manufacturers of milk products, stopped paying purchase tax on milk for the period 1‑April‑1996 to 4‑June‑1997, relying on a series of public statements by the Punjab Government that the tax had been abolished. The State later issued demands for the tax and appealed the High Court’s order quashing thos…