VISHWANATH JHUNJHUNWALA Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) At the outset, we make it clear that the learned counsel are not clear as to the amendments that have been effected to the Statutes in question. We are constrained to proceed upon the material placed before us and on the basis of the stand taken by them.

(2.) The appellant before us is a partnership firm registered as a dealer under the provisions of the U.P. Sales Tax act, 1948 (for short 'the Act') and the Central Sales Tax Act. The firm is engaged in refining of oil on its own account and also on job work basis. For the purpose the firm required steam coal in huge quantity to be used as fuel for manufacturing the refined oil. In order to bring coal by road from Central Coal Fields, Ranchi to Varanasi, where the appellant's factory is situate, the appellant required Form 31 as prescribed under the Act and requested the Assistant Commissioner (Assessment) I Trade Tax, Varanasi, respondent No. 2 herein, to issue 1300 Forms 31, who instead of issuing Form 31 initiated proceedings under Section 15-A(1)(r) of the Act asking the appellant to show cause as to why penalty be not imposed as coal which was being imported by the appellant on Form 31 was being used on job work while it should be used for his own business. The appellant replied to the aforesaid show cause notice and an order was passed directing the appellant not to use the coal imported on Form 31 for job work.

(3.) The High Court held that Section 28-A, sub-section (1) of the Act makes it clear that an importer who intends to bring, import or otherwise receive into the State from any place outside the State any goods liable to tax under the Act in such quantity or measure or of such value as provided under this provision in connection with his business, he shall obtain the prescribed declaration in Form 31 and if he intends to bring, import or receive such goods otherwise than in connection with business, he may, in the like manner, obtain the prescribed form of certificate, that is, Form 30. There was no dispute before the Court that transactions of sale and purchase of coal were subject to tax and the appellant was importing coal in excess of the limits mentioned under Section 28-A and, therefore, the appellant should have obtained Form 31 if he intended to bring or import coal in connection with his business and if he intended to bring or import coal otherwise than in connection with his business, he may obtain Form 32.