GSTR No.34 of 2006 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH GSTR No.34 of 2006 DATE OF DECISION: March 9, 2010 M/S JUPITER METAL INDUSTRIES PVT. LTD., ...PETITIONER BALONGI, DISTT. MOHALI VERSUS STATE OF PUNJAB ...RESPONDENT CORAM: HON'BLE MR. JUSTICE ASHUTOSH MOHUNTA. HON'BLE MR. JUSTICE MEHINDER SINGH SULLAR. PRESENT: MR. KISHAN SINGH, ADVOCATE FOR THE PETITIONER. MR. PIYUSH KANT JAIN, ADDL.A.G., PUNJAB. ASHUTOSH MOHUNTA, J.(ORAL) The VAT Tribunal, Punjab vide its order dated 25.9.2006, has referred the following question of law for adjudication to this Hon'ble Court:- “Whether the Tribunal was correct in law in holding that the wool tops are to be taxed at the rate of 8% under section 5 of the Punjab General Sales Tax Act, 1948?” The petitioner is a manufacturer of blankets. The blankets are covered under Schedule B of the Punjab General Sales Tax Act, 1948 (for short 'the Act') and are exempted from tax. In order to manufacture the blankets, the petitioner used wool tops on which they are to be taxed @ 8%. The claim of the petitioner is that as wool tops are manufactured from raw wool, hence, they are liable to be taxed @ 2% under Notification dated 2.12.1982, issued under Section 5(1) of the Act. GSTR No.34 of 2006 -2- A perusal of the aforementioned facts shows that the blankets are being manufactured by the petitioner from wool tops which is entirely a different item from all types of wool including knitting wool. Hence, the petitioner would be liable to be taxed @ 8% under Section 5 of the Act. The reference is answered in favour of the Revenue and against the assessee. (ASHUTOSH MOHUNTA) JUDGE March 9, 2010 (MEHINDER SINGH SULLAR) Gulati JUDGE