INDIAN CARBON LTD. Vs. SUPERINTENDENT OF TAXES, GAUHATI

JUDGEMENT

(1.) This is an appeal by certificate from judgment of the Assam and Nagaland High Court.

(2.) The appellants is a company incorporated under the Indian Companies Act 1956 in the State of Assam. It started its business on November 17, 1962 for the first time. The business includes sale and purchase of petroleum coke. Until September 1, 1964 no sales tax was levied or was payable by the company on the sale of petroleum coke because in Schedule 3 of the Assam Sales Tax Act 1947, hereinafter called the "Assam Act", which enumerated the goods on which tax was not payable. Entry 7 read "coal, coke and coaigas." By Amending Act 14 of 1964 the said Entry was deleted from Schedule 3 to the Assam Act with effect from September 1, 1964. By means of a letter dated July 7, 1964 the Superintendent of Taxes, Assam informed the company that the petroleum coke and gas were taxable at the rate of 5nP in a rupee under the Assam Act and directed the company to submit the return for all the periods prior to September 1, 1964 and also apply for registration under the Assam Act for the sale of petroleum coke within the State of Assam. The company preferred a petition for revision under sec. 31 (2) of the Assam Act challenging the order of the Superintendent of Taxes. This petition was dismissed by the Commissioner of Taxes on September 8, 1965. During the pendency of the said revision petition the Superintendent of Taxes by his letter dated August 14, 1965 modified his earlier order to the extent that the demand was confined to the sale of petroleum coke subsequent to September 1, 1964. The company then moved the High Court under Art. 226 of the Constitution which was dismissed.

(3.) In the writ petition as also the return held in reply there to and before the High Court the provisions of certain other enactments were mentioned. These were the Assam Finance Sales Tax Act, 1956 as amended from time to time and the Assam (Sales of Petroleum and Petroleum Products ................) Act 1956 as amended. It is unnecessary to refer to their relevant provision because before it is common ground that the tax would be payable under the Assam Act, the only question being about the rate. Under the Assam Act, the rate chargeable was 5 paise per rupee. But it has been claimed on behalf of the appellant that by virtue of the provisions of the Central Sales Tax Act 1956, hereinafter called the "Act", the rate at which the tax would be payable is 2 paise per rupee.