STATE OF WEST BENGAL Vs. JINDAL INDIA LIMITED

JUDGEMENT

(1.) The judgment and order under challenge by special leave was passed by the West Bengal Taxation tribunal upon a Writ Petition filed by the respondents, which had been transferred to it for hearing and final disposal.

(2.) Between 6th August and 23rd september, 1991 the first respondent brought into the Calcutta Metropolitan Area 551. 05 m. T. of what it described as steel scrap in the declaration that it was required to make under the provisions of section 13 of the taxes on Entry of Goods into Calcutta metropolitan Area Act, 1972. Steel scrap being not exigible to tax, the consignment was cleared without the first respondent being required to make any payment on that account. The first respondent was then served with a notice under section 14 (3) of the said Act seeking to re-open the assessment on the basis that what had been cleared was not steel scrap but other articles manufactured from iron or steel, falling under Entry 53 (d) (ix). Ultimately, the assessment in this behalf was completed and the first respondent was called upon to make payment of a sum of rs. 1,00,054. 00. The respondents filed a writ petition in the High Court at Calcutta challenging the said demand. The writ petition stood transferred to the West Bengal taxation Tribunal constituted under the provisions of the West Bengal Taxation tribunal Act. By the impugned judgment, the demand was quashed. According to the tribunal, the first respondent/having made a declaration as required by section 13 and the Inspector of Entry Tax at the concerned check post having inspected and verified the goods and been satisfied that the goods were steel scrap, which was exempt, the proceeding under section 14 (3) could not have been commenced.

(3.) Section 13 of the Act requires every dealer of specified goods to deliver to the prescribed authority a declaration relating to goods proposed to be brought into the calcutta Metropolitan Area before their entry. Section 14 (1) states that where a declaration has been made under section 13, the prescribed authority shall verify the goods in such manner as he may consider necessary and assess the tax leviable on the entry of such goods. Section 14 (3) states :