COLLECTOR OF CUSTOMS Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) The Union of India is in appeal against the judgment and order of the West Bengal Taxation tribunal, which is reported in Collector of Customs v. State of W. B. The tribunal upheld the contention of the respondent-State that the Collector of Customs was a "dealer" within the meaning of the definition of that word in the Bengal Finance (Sales Tax) Act, 1941, when he sold goods confiscated under the provisions of the Customs Act, 1962 because of non-payment of customs duty thereon.

(2.) Only one contention is advanced before us by learned counsel on behalf of the appellants, and it is, that Article 285 of the Constitution debars the imposition of tax upon property belonging to the appellants.

(3.) Reliance in this behalf is placed on the judgment of two learned Judges of this court in State of Punjab v. Union OF INDIA. The Punjab High court in that matter had answered the two questions before it in favour of the Union of India. The second question was whether no sales tax could be levied in view of the provisions of Article 285 of the Constitution on goods purchased by the Railways and sold by the Railways in their Catering Department. This court said that at the time of their sale, the goods belonged to the Railways. The tax had been imposed on such sale. In view of the provisions of Article 285, such sale was immune from taxation under the State law.