OM PRAKAS GUPTA Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) The petitioner, Om Prakas Gupta, carries on business, under the trade name of Messrs S. D. Gupta & Co., in camphor cubes. He says that he purchases camphor in powder form from the market, converts camphor powder into camphor cubes and sells such cubes in the market, under brands---"Elephant", "Moon" and " Arati ".

(2.) The petitioner says that he was registered as a dealer under Section 7 of the Bengal Finance (Sales Tax) Act, 1941, and that the Commercial Tax Officer, Jorasanko Charge, assessed him to sales tax, under Section 11(2) of the Bengal Finance (Sales Tax) Act, for the period 15th November, 1955, to 30th June, 1958, by an order dated 9th February, 1959. Thereupon, the petitioner filed an application before the Commercial Tax Officer for cancellation of his registration as a dealer under the Bengal Finance (Sales Tax) Act, on the plea that camphor was not a taxable commodity under the Bengal Finance (Sales Tax) Act and he, as a dealer in camphor, need not remain as a registered dealer under the said Act. He followed up the application by a second one, therein taking up the plea that camphor was a drug within the definition of Indian Drugs Act and that the provisions of Bengal Finance (Sales Tax) Act were not applicable thereto and as such the assessment of tax upon the petitioner for sale of camphor during the period 15th November, 1955, to 30th June, 1958, should be set aside.

(3.) The Commercial Tax Officer rejected both the applications by an order dated 9th September, 1955. The petitioner moved the" Assistant Commissioner of Commercial Taxes against the aforesaid order. The Assistant Commissioner thereupon directed the Commercial Tax Officer to make an on-the-spot enquiry at the petitioner's place of business and submit a report on the following two points: (1) whether camphor tablets manufactured by the petitioner were exclusively made of camphor powder, and (2) whether the petitioner had any liability to pay tax under the Bengal Finance (Sales Tax) Act. The Commercial Tax Officer made an enquiry, as directed, and submitted the following reports: The dealer is engaged in making 'camphor' tablets and sells them.