DELTA INDUSTRIES Vs. STATE OF TRIPURA

JUDGEMENT

(1.) This is an application under Article 226 of the Constitution filed by the petitioner for quashing the communication dated 18th January, 1989 of the Addl. Commissioner of Tax. Govt. of Triprua to the petitioner wherein it has been stated that "Mill Board" is covered under the Entry 39 of the Schedule appended to the Tripura Sales Tax Act, 1976 and was taxable at the rate of 12 present and for a declaration that Mill Board was not taxable under the Tripura Saks Tax Act, 1976 and for further direction on the respondents to refund the sum of Rs.1 ,768 realised as tax on Mill Board from the petitioner with interest on the ground that the said tax was recovered from the petitioner without jurisdiction.

(2.) Brief facts of the case as stated in the Writ petition are that the petitioner is a Small Scale Industrial Unit registered with the District Industries Centre, Tripura (West) manufacturing file cover, file board and cotton tags. For the manufacture of File Board and File cover, the petitioner imports Mill Board from outside the State. Accordingly, under a Bill dated 19-12-88 of M/s. India Trading Agency, 14/2, Old China Bazar, Calcutta the petitioner purchased Mill Boards of the value of Rs.10,989/- and the said Mill Boards were transported by the carrier from Calcutta to Tripura. When the Mill Boards were received by the carrier of Tripura, a demand was made on the petitioner to pay the tax of said Mill Boards under the Tripura Sales Tax Act, 1976. The petitioner, however, sought clarification by letter dated 30th January, 1989 from the Add. Commissioner of Taxes, Govt. of Tripura as to whether Mil Board was taxable under the Tripura Sales Tax Act, 1976. But by the communication dt. 18th January, 1989 of the Addl. Commissioner of Taxes, Govt. of Tripura the petitioner was informed that Mill Board was covered by Entry 39 of the Schedule to the Tripura Sales Tax Act, 1976 and was taxable at the rate of 12 percent. Thereafter, a sum of Rs. 1,768/- was deposited under challan dated 1.2.1989 as sales tax by the petitioner and the Mill Board were released by the petitioner as the petitioner wanted to release the Mill Boards forthwith for the purpose of using the same in his industry for manufacturing file board.

(3.) At the hearing of the Civil Rule, Mr D.K. Biswas, learned counsel for the petitioner submitted that a reading of Entry 39 of the Schedule to the Tripura Sales Tax Act, 1976 will show that Mill Board is not covered by the said Entry and so not liable for tax under the Tripura Sales Tax Act, 1976, particularly when there is no residuary entry in the schedule. Mr Biswas further submitted that the petitioner has to import the Mill Boards from places outside the State for the purpose of manufacturing file boards in his Small Scale Industry and that the petitioner had no option but to pay an amount of Rs. 1,768/- as sales tax for the purpose of releasing the Mill Boards imported from Calcutta and utilising the same in his industry for manufacturing file board and now that the petitioner has paid the same, a direction ought to be issued for refund of the said amount illegally realised as tax.