JINDAL INDIA LTD Vs. ASSISTANT COMMISSIONER COMMERCIAL TAXES

JUDGEMENT

(1.) This writ petition was filed by the petitioner No. 1 company along with its one Joint Managing Director, being the petitioner No. 2 challenging the judgment and order dated February 28, 2002 of the Tribunal as also challenging the power of the respondents to levy tax on sale of cold rolled strips manufactured out of hot rolled strips and the assessment made on that basis.

(2.) Petitioner No. 1 company carries on business, inter alia, of manufacturing steel pipes. In extension of its business, the company was manufacturing cold rolled strips from hot rolled strips since September, 1993 and it is registered dealer under Section 26(7) of the West Bengal Sales Tax Act, 1994. On an application made by the petitioner, the Assistant Commissioner, Commercial Taxes granted an eligibility certificate to the company on January 20, 1995 for the purpose of availing remission under Section 10G of the Bengal Finance (Sales Tax) Act, 1941 which was initially valid for a period of one year ending on October 29, 1994 and was thereafter renewed up to October 29, 1995 and, therefore, the company was eligible for remission of tax to the prescribed extent.

(3.) Upon expiry of the eligibility period, the company no more was entitled to exemption from tax on the purchase of hot rolled strips in West Bengal. By a notice dated December 13, 1999 the company was asked to show cause why the amount specified in the notice should not be demanded from it. An order dated December 6, 1999 was also served on the company, whereby it was stated that tax was leviable on the sale of cold rolled strips manufactured out of hot rolled strips purchased locally and the claim of the company that no tax was payable on the cold rolled strips by virtue of Section 15(a) of the Central Sales Tax Act, 1956 was held to be not correct.