ECOLAB FOOD SAFETY Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This petition has been preferred with the following prayers:

(2.) The petitioner No.1 is a part of Multi-Nationial Ecolab Group of companies having head office in the United States of America. It is engaged in multiple businesses across the world. It had a factory in manufacture and sale of chemicals. According to the petitioner, it has maintained a computerized accounting and invoice generating program. The branches issued F Form declaration for receipt of the goods from manufacturing unit in the State of Gujarat. Such declarations were issued for the value as mentioned in the stock transfer invoice as the goods were received from the factory at such value.

(3.) The dispute has been raised by the assessing authority during the assessment regarding the branch transfer transactions on the ground that the value of F Form declaration did not include value of supplementary invoice. The explanation of the petitioner has not been accepted by the assessing authority and it imposed tax under the CST Act on the value of the supplementary invoices on the ground that such value was not covered by the F Form declaration.