PORCELAIN INDIA P LTD Vs. STATE OF ASSAM

JUDGEMENT

(1.) THE writ petitioner, a Private Limited Company, is a dealer registered under the Assam Finance (Sales Tax) Act, 1956 (since repealed ). Claiming to be an exempted unit under the 1982 Industrial Policy promulgated by the Government of Assam, the petitioner has challenged a common revisional order dated 14. 6. 1999 dismissing the revision applications filed by the petitioner against the orders of assessment for the periods ending 30. 9. 1985, 31. 3. 1986, 30. 9. 1986, 31. 3. 1987, 30. 9. 1987, 31. 3. 1988, 30. 9. 1988, 31. 3. 1989 and 30. 9. 1989.

(2.) UNDER the 1982 Industrial Policy in force in the State of Assam during the relevant period, exemption from payment of sales tax was granted to eligible industries both in respect of purchase of raw materials for manufacture of the finished goods as well as on the sale of the finished goods by such an eligible unit. To give effect to the exemptions from payment of sales tax as contained in the Industrial Policy, the Assam Industries (Sales Tax Concessions) Act, 1986 (Assam Act 1 of 1987) was enacted. Section 3 of the Act visualizes exemption of sales tax to a dealer in respect of sales made by him of any goods to a person possessing a valid authorization certificate provided such goods are specified in such certificate to be intended by the holder thereof for use as raw materials in the manufacture of the finished goods. Insofar as finished goods are concerned, by Chapter III of Assam Act 1 of 1987, amendment of existing sales tax laws, by incorporation of, amongst others, Section 3-B in each of such sales tax laws was contemplated. Section 3-B which was incorporated in all such sales tax laws by Chapter III of Assam Act 1 of 1987, being peri material, the provisions of Section 3-B may be usefully extracted herein under :

(3.) THE petitioner filed separate revision applications against each order of assessment for the periods in question. All the revision applications filed by the petitioner were disposed of by a common order dated 14. 6. 1999 whereby the revisional authority after recording the finding that the petitioner had collected sales tax on its sale transactions took the view that the petitioner, therefore, was not eligible for exemption from payment of tax on sales of its finished products. Accordingly, the revision applications were dismissed giving rise to the present writ petition.