Supreme Court of India

STATE OF PUNJAB & ORS.versusM/S SANKESHWAR HOSIERY INDUSTRY

Citation: 2008 INSC 327
Decided: 7 March 2008
Disposal: Dismissed
Bench: S H KAPADIA

Holding

Deduction from taxable turnover under Rule 29 (xii) of the Punjab General Sales Tax Rules, 1949 is permissible.

Summary

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 language of the rule and relied on its earlier decision in State of Punjab & Others v. Mis. Perfect Synthetics (2008 (4) SCR 582). It held that the deduction under the rule is permissible. Consequently, the appeal was dismissed with costs. The judgment reaffirmed the earlier precedent and clarified the application of the rule in sales‑tax calculations.

Issues considered

Whether deduction from taxable turnover under Rule 29 (xii) of the Punjab General Sales Tax Rules, 1949 is permissible.

Subjects

Sales TaxTaxable TurnoverDeductionPunjab General Sales Tax RulesCivil AppealAppellate Jurisdiction

Judgment

 I        I
                                   [2008] 4 S.C.R. 609



-·                           STATE OF PUNJAB & ORS.
                                           v.
                       MIS. SANKESHWAR HOSIERY INDUSTRY
                                                                                  A


                            (Civil Appeal No. 1816 of 2008)
                                    MARCH 7, 2008
                                                                                  B
                 [S.H. KAPADIA AND B. SUDERSHAN REDDY, JJ.]

                  Punjab General Sales Tax rules, 1949 - r. 29 (xii) -
              Deduction from taxable turnover - Permissibility- Held: Such
              deduction permissible.                                              c
                   State of Punjab and Ors. etc. etc. v. Mis. Perfect
              Synthetics etc. etc. - 2008 (4) SCR 582 - relied on.
                  CIVILAPPELLATE JURISDICTION : Civil Appeal No. 1816
              of2008                                                      D
                  From the Judgment and Order dated 18.8.2006 of the High
              Court of Punjab and Haryana at Chandigarh in C.W.P. No.
              12760/2006
                    Mahabir Singh, S. Ganesh, Dalip Singh Brar, Ajay Pal,         E
              Nikhil Jain, S.P. Singh Chauhan, Sanjay Jain, Ashok Kumar
              Singh, Surender Dutt Sharma, Naresh Kr. Gaur, S.B. Meitei,
              See raj Bagga, S. Bagga and M.P. Devnath for the appearing
              parties.
 ...               The Judgment of the Court was delivered by                     F
     y
                   KAPADIA, J. Leave granted.
                   In view of our decision in the case of State of Punjab &
              Others etc. etc. v. iVi/s. Perfect Synthetics etc. etc. - Civil
              Appeal No.1072 of 2008, the civil appeal is dism;ssed witli nc      (~

              order as to costs.
     ~-
              K.K.T.                                     Appea! 'j ,sr.1iss.::•


                                           609

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