WESTERN COAL FIELD LTD Vs. ADDL. COMMISSIONER, COMMERCIAL

JUDGEMENT

(1.) This petition is directed against the order Annexure P-8, dated 4.2.2005, by which the respondents have imposed entry tax @ 2.5% on the petitioner for sale of the goods namely coal (not for cooking purposes). The aforesaid goods was sold to M.P. Electricity Board, Sarni to be used for the production of electricity, upon filing a declaration in Form I Rule 4(1)(iii) of the Rule namely Entry Tax Rules, 1976.

(2.) The contention of the petitioner is that as per the notification Annexure P-9, which was made effective from 1.5.1997, the petitioner was liable to make payment of entry tax at the rate of 1% on the coal as the entry was effected into local areas by the registered dealer for use as raw material in the manufacture of other goods and the due declaration was filed by the Board in this regard.

(3.) Shri Rahul Jain, Dy.A.G. supported the order and submitted that as per the rules the entry tax was payable @2.5% and rightly the earlier order was recalled and subsequent order was passed.