ABHISAR BUILDWELL PVT. LTD. Vs. STATE OF TRIPURA

JUDGEMENT

(1.) THESE five writ petitions are being disposed of by a common judgment since the facts and legal issues involved in all the cases are identical. The only difference is that the petitions relate to different assessment years, i.e. 2008 -2009 to 2012 -2013.

(2.) THE petitioner -company which is duly incorporated under the Companies Act, 1956 has set up a plant in the State of Tripura where it is manufacturing rubber thread. The petitioner purchases raw rubber/latex from the growers and pays purchase tax on the same. The petitioner -firm processes/manufactures rubber thread out of raw rubber. A large amount of this rubber thread is being sold outside the State either by transfer of stock on "F" form or by means of inter -State sale on "C" form. Value added tax @ 12.5% per annum was leviable on the sale of rubber thread sold in Tripura upto 03 -05 -2011 and thereafter @ 13.5% per annum w.e.f. 04 -05 -2011.

(3.) THE dealer contested the notice on various grounds including the ground that input tax credit was available even in respect of sales made outside Tripura. It was further urged that the State of Tripura had no jurisdiction to levy tax on the sales made outside Tripura. The petitioner -assessee had submitted its returns for the years 2008 -09 to 2012 -13. In these assessments, it had claimed input tax credit for the amount collected by it as CST by adjusting it against the purchase tax payable by it in respect of purchase of raw rubber. The Assessing Officer did not accept the plea of the petitioner and held the assessee liable to pay tax amounting to Rs. 1,85,78,016.43 paisa, interest of Rs. 27,86,702.46 paisa and penalty @ 150% amounting to Rs. 2,78,67,024.64 paisa. Thus, the assessee was found liable to pay a total amount of Rs. 4,92,31,744.00. Against this order, the assessee approached the revisional authority and the revisional authority vide its order dated 20 -02 -2014 upheld the order of the assessing authority. Hence, these petitions.