SATNA CEMENT WORKS Vs. COMMISSIONER OF SALES TAX.

JUDGEMENT

(1.) THIS is a sales tax reference at the instance of the assessee and the following questions of law have been referred by the Tribunal for answer of this Court, which read as under :

(2.) THE brief facts giving rise to this reference are thus : The assessee - M/s. Satna Cement Works are manufacturers of cement. They were assessed to entry tax for the period from April 1, 1979 to March 31, 1980 by the Assistant Commissioner of Sales Tax, Satna, by order dated September 29, 1983. Aggrieved against this order, the assessee filed first appeal before the Appellate Deputy Commissioner of Sales Tax and the Appellate Deputy Commissioner by his order dated March 21, 1985, remanded the case back to the assessing officer. However, so for as the assessment of the liability of entry tax is concerned, it was upheld by the Deputy Commissioner of Sales Tax.

(3.) IN fact, both the local areas, i.e., the mine area as well as the plant, fall within the premises of the factory. The limestones are extracted from the company's own mines - which are situated in a different local area though within factory area and they are transported to the factory for manufacture of cement. Since the mines as well as plant both fall within the premises of the assessee - factory/company but they fall in different local areas, i.e., mine is in one local area and plant is another local area, but that is not the decisive of the matter. If the mining operation which is being undertaken, falls in different local area and the limestone is brought by the company from one local area to other local area then it will be exigible to entry tax. Therefore, the Tribunal has rightly assessed the liability of the assessee for entry tax. In these circumstances, we are of the opinion that both the aforesaid questions are answered against the assessee and in favour of the Revenue.