MINERALS AND METALS TRADING CORPORATION OF INDIA LIMITED Vs. DEPUTY COMMISSIONER COMMERCIAL TAXES VISAKHAPATNAM

JUDGEMENT

(1.) These appeals are directed against the judgment and order of the High court of A. P. dismissing writ petitions filed by the appellant. The writ petitions impugned notices issued by the Deputy Commissioner of Taxes, Visakhapatnam, under the provisions of Section 20 of the A. P. General Sales Tax Act, 1957 (6 of 1957. The notices pertained to the years 1956-57, 1957-58, 1967-68, 1968-69, 1969-70 and 1970-71. The notices stated that during these periods iron ore and manganese ore were taxable at the time of purchase by the last dealer in the State. The appellants had figured as the last c purchasers of the goods in the State since the purchase of iron ore and manganese ore involved in the turnover were exported immediately thereafter. The benefit of Article 286 (1) of the Constitution extended to transactions which came within the meaning of the phrase "in the course of export". In view of the decision of the Supreme court in Mohd. Serajuddin v. State of orissa', it was clear that transactions anterior to the actual export were not within the scope of the exemption. Therefore, the exemption that had been allowed by the Assistant Commissioner on the purchases of iron ore and manganese ore was erroneous and was proposed to be cancelled and the turnover in this behalf restored to assessment to tax. The show-cause notice called upon the appellants to tender objections to such course bang adopted.

(2.) The High court took the view that the jadgmentoin Mohd. Serajuddin case had declared the law and that it was, therefore, open to the Deputy Commissioner of Commercial Taxes to invoke powers under Section 20 of the said Act.

(3.) Section 20 (1, as it then read, empowered the Commissioner of Commercial Taxes to call for and examine the record of any order passed or proceeding recorded by any subordinate authority, officer or person under the provisions of the said Act for the purpose of satisfying itself as to the legality or propriety of such order or as to the regularity of such proceeding and to pass such order in reference thereto as it thought fit. The powers in this behalf were, by reason of Section 20 (2, also exercisable by, inter alia, the Deputy Commissioner.