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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’.

-2-         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.