J. K. INDUSTRIES LTD Vs. STATE OF ASSAM

JUDGEMENT

(1.) Heard Mr. K. Choudhury, learned Counsel appearing for the Petitioners. Mr. R. Dubey, learned standing counsel, represents the Revenue.

(2.) The Petitioners challenge the notice dated May 15, 2004 (annexure C) issued by the Inspector of Taxes under Section 44(1) of the Assam General Sales Tax Act, 1993 (hereinafter referred to as "the AGST Act"). By the impugned notice, Petitioner No. 2 was asked to produce the books of accounts of their business with effect from April 1, 2003 onwards. They also challenge the seizure list of the same date (annexure D) under Sub-section (3) of Section 44 of the AGST Act.

(3.) Petitioner No. 1 carries on the business of manufacture and sale of tyres and Petitioner No. 2 is the carrying and forwarding agent of the Petitioner No. 1. They supply tyres to the Indian Security Agencies and the present proceeding relates to the supply order(s) issued by the Chief Engineer (Projects), Dantak. The supply was made to the different locations of Bhutan but the precise destination was undisclosed for security consideration. The Petitioners have, inter alia, enclosed the communication made by the Chief Engineer of Project, Dantak to show that the supplies in question were made in a foreign country's destination and therefore the transactions are exempt from sales tax, under the Assam General Sales Tax Act or the Central Sales Tax Act, 1956.