HANUMAN TRADING COMPANY Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) This writ petition is made challenging imposition of luxury tax under the W.B. Luxury Tax Act, 1994 in respect of imported Vanaspati from Nepal.

(2.) The contention of the petitioners is that by virtue of the Treaty of Transit, Treaty of Trade and Agreement of co-operation to control unauthorised trade between His Majesty's Government of Nepal and the Government of India the internal taxation charges of the movement of the primary products of either contracting party to any market destinations in the territory of the other shall be accorded treatment no less favourable than that accorded to the movement of its own primary products within its territory. The Vanaspati is one of such product for which the petitioners are paying more revenue.

(3.) In exercise of power conferred by Sub-section 1 of Section 25 of the Customs Act, 1962 the Central Government has given a general exemption under certain goods and effective rate of duty for imports from Nepal under General Exemption No. 33. Petitioners product fall under such category.