IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.M. No.6571 of 2010 in C.W.P. No.16521 of 1998 (O&M) Date of decision: 21.5.2010 M/s Manish & Co. Ludhiana. -----Petitioner. Vs. The State of Haryana and others. -----Respondents CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE ALOK SINGH Present:- Mr. Sandeep Goyal, Advocate for the petitioner. Ms. Ritu Bahri, Sr. DAG, Haryana. --- ADARSH KUMAR GOEL, J. 1. This petition seeks quashing of orders of statutory authorities under the provisions of the Haryana General Sales Tax Act, 1973. 2. Case of the petitioner is that it was a distributor of lottery tickets and sold lottery tickets to a Shimla dealer. The same were being carried in a vehicle on 20.10.1996 when they were detained on the allegation that there was evasion of sales tax. The vehicle was released under orders of this Court in writ petition by the owner of the vehicle. Case of the petitioner was that there was no evasion of tax involved and the documents CWP No.16521 of 1998 were genuine. However, this stand was not accepted and order dated 30.10.1996, Annexure P-5, was passed, imposing penalty of Rs.2,00,500/-, which order was affirmed by higher statutory authorities vide Annexures P-9 and P-11. Aggrieved thereby, further appeal was filed to the Tribunal, but in view of requirement of pre-deposit, this petition was filed, seeking waiver of pre- deposit. Challenge to the order of levying penalty was also made on merits. During pendency of the writ petition, recovery was stayed. 3. We have heard learned counsel for the parties. 4. Learned counsel for the petitioner points out that during pendency of this petition, Hon’ble the Supreme Court in M/s Sunrise Associates v. Govt. of NCT of Delhi and others AIR 2006 SC 1908, held that lottery tickets were not goods and were not covered by the Sales Tax law, which applies only when sale of goods is there. This legal position is not disputed by learned counsel for the State. 5. In view of above, this petition is allowed and the impugned orders of penalty, Annexures P-5, P-9 and P-11, are set aside. (ADARSH KUMAR GOEL) JUDGE May 21, 2010 ( ALOK SINGH ) ashwani JUDGE 2