INDIA CARBON Vs. STATE OF ASSAM

JUDGEMENT

(1.) THE petitioners have challenged the vires of section 3 of the Assam (Sales of Petroleum and Petroleum Products, including Motor Spirit and Lubricants) Taxation Act, 1955, in so far as it relates to the classification of the petroleum coke into two commercial commodities, namely, raw petroleum coke and calcined petroleum coke, for the purpose of taxation on the ground that it violates article 286 (3) of the Constitution and the Central Sales Tax Act, 1956.

(2.) M /s. India Carbon Limited is a registered company having its registered office to Gauhati in Assam carrying on the business of purchase and sale of petroleum coke. The company purchased raw petroleum coke and paid tax under the provisions of the Assam (Sales of Petroleum and Petroleum Products, including Motor Spirit and Lubricants) Taxation Act, 1955 (for short "the Assam Act" ). Out of the said raw petroleum coke the company manufactured calcined petroleum coke and sold most of the calcined petroleum coke in the course of the inter-State trade or commerce and also paid tax under the Central Sales Tax Act, 1956. Under section 15 (b) of the Central Sales Tax Act, the Government of Assam has to refund the tax levied under the Assam Act. But the Superintendent of Taxes, Assam, Gauhati, refused to refund the same on the ground that raw petroleum coke and calcined petroleum coke are different commercial commodities. Hence this petition.

(3.) LEARNED counsel for the petitioner, Mr. J. P. Bhattacharjee, has challenged the classification on the ground that the Legislature of Assam was not competent to make the classification as it would violate article 286 (3) of the Constitution as well as sections 14 and 15 of the Central Sales Tax Act.