FOOD CORPORATION OF INDIA versus STATE OF PUNJAB

Citation: [2009] 13 S.C.R. 456 · Decided: 21-08-2009 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Case Partly allowed

Judgment (excerpt)

[2009) 13 (ADDL.) S.C.R. 456 
/ 
A 
FOOD CORPORATION OF INDIA 
v. 
STATE. OF PUNJAB 
(Civil Appeal No. 5712 of 2009) 
B 
AUGUST 21, 2009 
[R.V. RAVEENDRAN AND P. SATHASIVAM, JJ.] 
-+" 
Punjab General Sales Tax Act, 1948-Assessee's claim 
for deduction from sales tax - Denied by Sales tax Tribunal 
c - Petition for referring the questions involved, to High Court, 
denied - After direction from High Court, tribunal referring two 
questions of Jaw to High Court - On reference, High Court 
returning one of the questions unanswered finding no factual 
~. 
basis for that - On appeal, held: The question having been 
D referred on the direction .of High Court, it could not have left 
-~ 
it unanswered - Adequate materials and factual details are 
available for determining the question. 
Appellant-assessee in its quarterly returns claimed 
E deduction In respect of sale of tax-free goods and sales 
made to the regi~tered dealers. Assessing Authority 
rejected the claim of deduction. The claim was also 
denied by the Sales Tax Tribunal. The assessee's petition. 
.. 
for referring the questions involved to the High Court was 
+ 
.F dismissed. Assessee filed petition before High Court 
praying for direction to the tribunal to refer the questions 
to High Court. High Court directed the tribunal to refer the 
questions for its opinion. Tribunal referred two questions 
of. law~ High Court decided one· question in· favour.of the 
assessee, while returned the other question unanswered, 
G concluding that the question did not emerge from the 
order of the tribunal, there being no factual basis 
-~ ... 
available. Hence the present appeal. 
Partly allowing the appeal, the Court 
H 
456 
.... _ 
' 
/ 
FOOD CORPORATION OF INDIA v. STATE OF 
457 
PUNJAB 
HELD: 1. The High Court, after satisfying itself, with 
A 
reference to the questions of law to be determined 
directed the tribunal to state the relevant case and refer 
the questions· for the opinion of the High Court. In view 
of the specific order/direction of the High Court, the Sales 
Tax Tribunal, has no other option but to refer the same 
B 
to the High Court and rightly referred it. In those 
circumstances, unless there were very clear reasons, the 
High Court could not have held that there was no material 
available in the order of the Tribunal for considering the 
same. [Para 6] [461-F-H; 462-A] 
c 
2. Adequate materials as well as factual details are 
available for determination of the first question of law 
referred to the High Court. Therefore, the order of the 
High Court insofar as it relates to the first question of law 
is set aside and the same is remitted to it for answering D 
the same after affording opportunity to both parties. 
[Paras 10 and 11] (463-D-F] 
Anand Swarup Mahesh Kumar vs. Commissioner of 
Sales Tax 1980 (46) STC 477, referred to. 
E 
Case Law Reference: 
1980 (46) STC 477 
Referred to. 
Para 3 
CIVIL AP PELLA TE JURISDICTION : Civil Appeal No. 
5712 of 2009. 
From the Judgment & Order dated 8.2.2007 of the High 
Court of Punjab & Haryana at Chandigarh in G.S.T.R. No. 16 
of 1991. 
Y. Prabhakara Rao for the Appellant. 
Ajay Pal for the Respondent. 
The Judgment of the Court was delivered by 
F 
G 
H 
458 SUPREME COURT REPORTS (2009) 13 (ADOL.) S.C.R. 
A 
P. SATHASIVAM, J. 1. Leave granted. 
.J~ 
' 
2. This appeal by Food Corporation of India (in short 
aFCI") is directed against the judgment and order of the High 
Court of Punjab & Haryana at Chandigarh dated 08.02.2007 
B in G.S.T.R. No. 16of1991 by which the High Court disposed 
of the reference made by the Sales Tax Tribunal. It returned the 
first question unanswered and answered the second question 
in favour of the assessee. 
+" 
3. The appellant, a Statutory Corporation, engaged in the 
c purchase and sale of foodgrains, is an assessee registered 
under the Punjab General Sales Tax Act, 1948 (hereinafter 
referred to as "the Act") at Amritsar. The appellant filed its 
quarterly returns in forms ST-XIII and ST-VIII-A showing gross 
turnovers at Rs.76,26,49,211.19 and Rs.5,88,00,715.78 
D respectively. Deductions were claimed in respect of sales of 
tax free goods and sales made to the registered dealers. 
~ 
Dissatisfied with the returns filed, the Assessing Authority 
issued statutory notice in form ST-XIV under Section 11 (2) of 
the Act requiring the appellant to produce their accounts. In 
E response to the said notice, the appellant appeared before the 
Assessing Authority and produced the a

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