FATIKCHERRA TEA ESTATE Vs. STATE OF TRIPURA, AGARTALA; COMMISSIONER OF TAXES; ASSISTANT COMMISSIONER OF TAXES; SUPERINTENDENT OF TAXES

JUDGEMENT

(1.) By means of this petition, the petitioner Tea Company has prayed for the grant of the following reliefs:

(2.) Briefly stated, the facts of the case are that the management of the petitioner company was taken over by the Government of Tripura vide the Tripura Tea Companies (Taking over of Management of certain Tea Unit) Act, 1986. Originally an ordinance was issued on 10.11.1986 and on the same day the management of the tea company was taken over by the government and, thereafter, the act was passed and the management of the tea company vested in the State Government. At the relevant time the tea garden was owned by the M/s Peerless Tea and Industries Limited. After the State took over the management, the tea garden was being run by the Tripura Tea Development Corporation Limited. Thereafter, the State gave up the management of the tea company on 25.09.1992. After this happened, one Kamala Tea Company took possession of the said tea garden. On 12.07.1995 the Superintendent of Taxes, Government of Tripura, Charge-IV, raised an assessment of sales tax amounting to Rs.1,78,000 for the assessment years 1984-85 to 1986-87 inclusive of interest etc. It is this assessment which is under challenge in these proceedings.

(3.) Sri Somik Deb,learned counsel appearing for the petitioner company, has urged that since the tea company had been taken over by the government along with all assets and liabilities, the liability if any, in relation to tax was also transferred to the State and, therefore, the tea company is not liable in respect of any action prior to the company being taken over by the State. His second argument is that in terms of Section 11 of the Tripura Sales Tax Act, 1976 the limitation to raise this demand is eight years and since the demands have been raised after eight years the same are not within limitation and hence on this ground alone deserve to be quashed.