Full Judgment Text
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CASE NO.:
Appeal (civil) 1406 of 2008
PETITIONER:
STATE OF PUNJAB & ORS
RESPONDENT:
SHITAL FIBRES LTD. & ANR
DATE OF JUDGMENT: 18/02/2008
BENCH:
S.H. KAPADIA & B. SUDERSHAN REDDY
JUDGMENT:
JUDGMENT
O R D E R
CIVIL APPEAL NO. 1406 OF 2008
(Arising out of SLP(C)No. 10196/2007)
Leave granted.
This civil appeal is directed against the judgment of Punjab and Haryana
High Court dated 29th November 2006 in CWP No. 14997/05 and connected
four writ petitions.
Five writ petitions were filed against the show cause notice issued
under Sec.51 of Punjab Valuation Added Tax Act 2005. The question
raised in the show cause notice was weather blankets came under the
description of "textile fabrics" which were exempted goods. According to
the Department the said items in question were ’made-ups’ and therefore
taxable whereas according to the assessee the items came under the
category of ’textile fabrics’.
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In our view the aforestated dispute warrants adjudication by the
Assessing Officer and therefore the High Court should not have quashed
the show cause notice at the threshold.
We express no opinion on the merits. We keep that question open.
Since the dispute warrants adjudication by the competent authority, we
hereby set aside the impugned judgment and remit the matter to the
Assessing Officer for determination of the said issue in accordance with
law. Contentions on both sides are expressly kept open.
Accordingly the impugned judgment is set aside and the Department’s
civil appeal stands allowed with no order as to costs.