AKSHAY COAL SUPPLIERS Vs. STATE OF ASSAM

JUDGEMENT

(1.) ALL the writ petitions are based on same set of facts with some minor variations relating to dates, years and amounts in respect of the demands made by the respondents for additional security towards issuance of road challans for carrying coal in the course of inter-State movement by road. According to the petitioners such demands for additional security made by the respondent are contrary to the provisions of law and can very well be adjusted against the excess security amounts lying with the respondents. The reliefs prayed for in all the writ petitions are the same. Thus, the writ petitioners were heard analogously and are being disposed of by this common judgment and order.

(2.) ALL the writ petitioners are registered coal dealers and are assessable to taxes both under the Assam General Sales Tax Act, 1993 and the Central Sales Tax Act, 1956 read with the Central Sales Tax (Assam) Rules, 1957. During the course of their business, coals are transported within and outside the State of Assam by road. For transporting/carrying coal, the petitioners are required to send road challans issued by the Superintendent of Taxes and for that purposes demand for security on every challan is made for every truck load of coal moved within and outside of the State of Assam. The respondents insist that the security deposits challan be produced on the way whenever demanded at the check gates or otherwise and unless the same are produced, the trucks loaded with coal are not allowed to pass and/or proceed further and are kept detained until production of security deposits challans showing payment of security.

(3.) ACCORDING to the petitioners the above action on the part of the respondents demanding security is not in accordance with law. They assert that although the Assam General Sales Tax Act, 1993 (AGST Act) read with Assam General Sales Tax Rules, 1993 (AGST Rules) as well as the Central Sales Tax Act, 1956 (CST Act) read with Central Sales Tax (Assam) Rules, 1957 (CST, Assam Rules) empower the respondents to demand security, but the same is subject to conditions precedent and other mandatory conditions provided thereunder.