STEEL STORES Vs. COMMISSIONER OF TAXES ASSAM

JUDGEMENT

(1.) The determination made by the Deputy Commissioner of Taxes, Guwahati Zone B, Guwahati, by his order dated October 31, 2003 in exercise of powers under Section 36(1) of the Assam General Sales Tax Act, 1993 (for short, hereafter referred to as, "the Act") construing aluminium plain sheets and extrusions marketed by the petitioner-firm to be items produced and fabricated from aluminium metal and thus not covered by entry 45(b) of Schedule II of the enactment is under assailment in this proceeding. A declaration has also been sought to adjudge the above items to be within the purview of the aforementioned entry for their exigibility under the Act for the period January 1, 2000 to February 18, 2002. At the time of issuance of rule on January 13, 2004, the operation of the order impugned as well as the consequential proceedings had been kept in abeyance.

(2.) I have heard Dr. A. K. Saraf, senior advocate for the petitioners and Mr. R. Dubey, learned standing counsel, Revenue, for the respondents.

(3.) The unrebutted pleaded case of the petitioner, in absence of any counter by the respondents, is that the petitioner-firm is a registered dealer under the Act and is engaged in the business of marketing aluminium manufactured by one M/s. Hindalco Industries Ltd. It receives plain aluminium sheets and extrusions in metal form and not finished products on stock transfer basis on behalf of the above company and the same are marketed by it without subjecting the same to any further process of fabrication or processing of any kind. The Government of Assam by Gazette Notification dated December 24, 1999 issued in exercise of its power under Section 8(2) of the Act prescribed a uniform rate of tax of eight per cent for aluminium sheets incorporated as entry 10 to Schedule IV thereof. The incidence of such levy on the aluminium sheets spanned over two stages at four per cent each at the first and the last points of sale in the State. According to the petitioners, this measure to introduce a uniformity in the tax structure introduced by the Government of India met with some reservation of the Government of Delhi which imposed tax at four per cent on all types of aluminium sheets. The petitioners accordingly submitted a representation before the Chief Minister of the State on January 19, 2001 requesting for a similar reduction in the rate of impost highlighting, inter alia, that in view of the higher rate of tax, various departments and public sector undertakings had started importing aluminium from beyond the State at four per cent Central sales tax instead of resorting to local purchases. Similar representations, according to the petitioners, were also made by others with the same request. The gazette notification dated January 27, 2000 by the Government of Assam followed whereby the following amendments were introduced in Schedule II and Schedule IV of the Act.