A J JALALUDDIN Vs. ASSISTANT COMMISSIONER COMMERCIAL TAXES

JUDGEMENT

(1.) IN this application the petitioners pray for the issue of a writ in the nature of certiorari calling upon the respondents to withdraw or cancel the order of respondent No. 3 dated September 17, 1958 and the order of the respondent No. 1 dated July 29, 1960 and restraining them from demanding or claiming or collecting any sales tax on the sale of snuff for the period after December 13, 1957 and for other ancillary and incidental reliefs. The petitioners are two in number who carry on business in snuff in partnership in the firm name of A. Jainulabdeen Sahib. Snuff is manufactured at Madras and sold in large quantities from the branch office of the firm at 501, Dharamtalla Street, Calcutta. The film is a registered dealer under the Bengal Finance (Sales Tax) Act of 1941. It submitted returns in respect of sales tax payable by it on account of snuff sold to the Sales Tax Authorities for the periods ending June 30, 1947, September 30, 1957 and December 13, 1957. It did not submit any return in respect of snuff sold by it from and after tine last mentioned date, its contention being that by reason of payment of additional Excise duty on snuff or the tobacco out of which snuff was prepared or manufactured no sales tax was payable on the sales of snuff from and after December 13, 1957 in the circumstances hereinafter mentioned.

(2.) THE respondents are (1) The Assistant Commissioner of Commercial Taxes, South Circle, Calcutta, (2) N. C. Biswas having his office and personally working for gain at 14, Beliaghata Road, Calcutta, (3) The Commercial Tax Officer, Taltala Charge, Calcutta (4) J. N. Mukherji having his office and personally working for gain at 14, Beliaghata Road, Calcutta and (5) State of West Bengal through the Finance Secretary, Secretariat, Calcutta.

(3.) THE respondent No. 3 by an order dated September 17, 1958 held that the petitioners were liable to pay sales tax on the sale of snuff even after December 13, 1957 and assessed the firm accordingly. The assessment was for Rs. 1,888. 82 np. on account of sales tax and penalty for the assessment year 1957-58. On an appeal being preferred from the said order to the Assistant Commissioner of Commercial Taxes, South Circle, Calcutta (respondent No. 1) the latter held by an order dated September 21, 1959 that sales of snuff on which additional excise duty had been paid were exempt from the payment of tax in view of rule 3 (28) of the Bengal Sales Tax Rules and set aside the order of assessment made by the respondent No. 3 directing him to make a fresh assessment. Thereafter the Commissioner of Commercial Taxes issued a circular that sales tax was payable on the sales of snuff. By letter dated April 28, 1960 the respondent No. 3 wrote to the petitioners that the order for exemption had been passed through a misapprehension and that he proposed to review the same.