SCJ PLASTIC LIMITED Vs. SALES TAX OFFICER

JUDGEMENT

(1.) Legality and validity of a circular issued by the Commissioner of Sales Tax dated 8/03/2000 is in question in this writ petition. The basic fact of the matter is not in dispute. The petitioner has been carrying on business in the manufacture and sale of masterbatches. It is contended that the said item is a raw material used in the plastic industry for manufacture of plastic goods. Whenever plastic goods are manufactured which are required to be coloured, masterbatches which is a viable and convenient raw material is used as a colouring agent.

(2.) On or about 1/04/1998, a notification was issued by the Lt. Governor in terms whereof 3% tax was levied on taxable turnover on plastic material. The table prescribing First Point Taxable Goods was also amended by a notification of the same date in terms whereof plastic raw material became liable to tax at first point. The petitioner filed a return and the Sales Tax Officer accepted the contention of the petitioner that the masterbatches come within the purview of the said notification and an assessment was made accordingly. By reason of the impugned order, however, the Commissioner noted:

(3.) Pursuant to or in furtherance of the said purported circular, the Assessing Officer issued a re-assessment notice stating: