NORTHERN COAL FIELDS LTD Vs. ADDITIONAL COMMISSIONER

JUDGEMENT

(1.) The question involved in the writ petitions is whether the transit fee realized under M. P. Transit (Forest Produce) Rules, 2000 (hereinafter referred to as "the Rules of 2000") can be considered to be forming part of "sale price" as defined in section 2(u) of the M. P. Commercial Tax Act.

(2.) The petitioner/Northern Coal Fields Ltd. is engaged in extraction and sale of coal. The State ofM. P. has framed M. P. Transit (Forest Produce) Rules, 2000 for imposing transit fee (for brevity hereinafter referred to as "Rules of 2000"). Rule 3 provides for regulation of transit of forest produce by means of passes. State of M. P. has prescribed the levy of transit fee at Rs. 7 per ton on various goods including coal vide notification (P.2) dated 28th May, 2001. Ministry of Forest directed the Chief Conservator of Forest to charge transit fee while issuing the transit passes as per letter dated 28-5-2001 that the transit fee payable shall be paid to issuing department in the single window procedure for issue of transit passes which shall be deposited in the Forest Department. The Revenue and Mining Department will issue passes. Royalty as well as the transit fee has to be paid, thereafter transit passes will be issued to the lessees. Before issue of transit passes along with royalty transit fees has to be deposited with respect to minerals which are extracted from the forest area. Vide communication (P.4) dated 7-2-2002 the petitioner was informed by the DFO with respect to deposit of transit fee along with royalty. The petitioner was required to make payment of transit fee with effect from 1-6-2001 to 31-1-2002 under the prescribed rate of Rs. 7 per ton. Collector also wrote to the petitioner for depositing the requisite transit fee. The petitioner had deposited the amount under protest.

(3.) In the assessment proceedings before the Assistant Commissioner, Commercial Tax, petitioner objected to the inclusion of amount of transit fees in the sale price, but the objection was not accepted and commercial tax has been levied vide Order (P.7) dated 27-1-2005. Petitioner filed a revision before the Addl. Commissioner, Commercial Tax, same has been dismissed vide Order (P. 10) dated 8-9-2006. The Commissioner, Commercial Tax has clarified that transit fee shall not form the part of the sale price in spite of that orders to the contrary were passed by respondents 1 and 2, hence petitions have been preferred.