STATE BANK OF INDIA Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The writ petitioner No. 1 is a branch of the writ petitioner No. 2, the State Bank of India which is a body corporate constituted under the State Bank of India Act, 1955, for the extension of banking facilities in the country and for other public purposes. The bank has to perform various functions as per the directions issued from time to time by the Reserve Bank of India in keeping with the economic and monetary policies of the Central Government. The writ petition is registered as a "dealer" under the Bengal Finance (Sales Tax) Act, 1941, hereinafter referred to as "the 1941 Act".

(2.) According to the writ petitioners, the policy notified by the Government of India under the Imports and Exports (Control) Act, 1947, as amended from time to time, and the Imports (Control) Order, 1955, regulate imports into and exports out of the country and contain different incentive schemes and subsidies to build up foreign exchange resources of the country. Prior to July 4, 1991 there was provision for issuance of Replenishment Licences which were referred to as "REP Licences". The objective behind the grant of such licences was to provide to registered exporters the facility of importing essential goods required for the manufacture of the products to be exported. Such licences were made freely transferable and such transfer did not require any endorsement or permission from the licensing authority. The only requirement was a letter from the transferor recording and evidencing the transfer. On that basis, the transferee became the lawful holder of the licence and was entitled to either import the goods for which the licence had been issued or sell the licence to someone else.

(3.) This policy remained in force till July 3, 1991, when it was substituted by a new policy. With effect from July 4, 1991, the nomenclature of the REP Licence was changed to "Exim scrip" (Export Import Licence). The provisions governing Exim Scrips were more or less the same as those governing REP licences with certain minor variations which are not relevant for the purpose of this case.