MAHAMAYA AGENCIES, LAXMI NARAYAN Vs. STATE OF TRIPURA; COMMISSIONER OF TAXES, GOVERNMENT OF TRIPURA, AGARTALA ; ASSISTANT COMMISSIONER OF TAXES, GOVERNMENT OF TRIPURA, AGARTALA

JUDGEMENT

(1.) The short question which arises in this petition is whether the iron and steel rings which are being imported by the petitioner-assessee to the State of Tripura are taxable in terms of Item 35 of Schedule II(a) or under Item 117 of Schedule II(b).

(2.) According to the petitioner he imports these iron and steel rings which have a break in the rings and these rings are used as piston rings mainly in the automobile sector. The petitioner sent a communication to the Commissioner of Taxes, Tripura on 09.01.2008 stating that they were charging 12.5% VAT for auto rings and 4% for tractor rings. It was further stated that the principal from whom they were importing the rings had informed them that in all the other states in India tax on these rings was imposed @ 4% in view of the provisions of the Central Sales Tax Act, 1956.

(3.) The short question is whether rings are covered under Section 14 of the Central Sales Tax Act, 1956 or not. To appreciate this contention it would be pertinent to mention that under Section 14 of the Central Sales Tax Act the Central Government can declare certain goods to be in special importance in inter- State trade or commerce. Relevant portion of Section 14 of the Central Sales Tax Act, 1956 reads as follows: