LALCHAND AGARWALLA Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) IN this Writ petition an interesting question of law, as to whether ground-nuts as such are liable to any levy under the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1970 (hereinafter referred to as the entry Tax Act), has come up for consideration.

(2.) THE said Entry Tax Act was enacted by the President of India in exercise of his powers under section 3 of the West Bengal State Legislature (Delegation of Powers) Act, 1970. It is an Act providing for levy of taxes on the entry of goods of certain kinds into the Calcutta Metropolitan Area for consumption, use or sale therein. This act came into force on November 16, 1970. The eight petitioners before this court are dealers in groundnuts. In course of their business, they import within the Calcutta Metropolitan Area groundnuts from different States in india for resale. Such groundnuts are used for the purpose of manufacturing groundnut oil which is one kind of edible oil. They are licensed dealers under the provisions of West Bengal edible Oil Seed Dealers Licensing order, 1965. The petitioners' grievance made out in this Writ petition is to the effect that although importation of such groundnuts as oil seeds is not subjected to any levy under provisions of the said Entry Tax Act, their goods are being subjected to such levy by the authorities in charge of different check posts. They further claim that even in the matter of imposition of the levy the authorities at the different check posts are not acting in any uniform manner. While some are assessing the groundnuts at 6% ad valorem, others are doing so either at 11/2 % ad valorem or Re 1/-per quintal. Being aggrieved by such imposition they have moved this Court with the above Writ petition on which this Rule has been issued. Their prayer is for a mandate upon the respondents not to impose any tax on the groundnuts imported by them into calcutta Metropolitan Area and refund the tax so far collected from them.

(3.) THE Rule is being contested by the respondents. An affidavit in opposition has been filed on their behalf and the learned Government Pleader is appearing to contest the Rule.