COMMISSIONER OF TAXES Vs. MAHABIR COKE INDUSTRIES

JUDGEMENT

(1.) THIS writ appeal arises out of the judgment and order dated 11. 11. 2002 passed in Civil Rule No. 569 of 1993.

(2.) HEARD Mr. K. N. Choudhury, learned senior Counsel for the respondents/appellants and Dr. A. K. Saraf, learned senior Counsel for the petitioner/respondent.

(3.) THE facts, in brief, short of details, require for consideration to dispose of this appeal, lie in narrow compass, are that the writ petitioner, respondent herein, M/s Mahavir Coke Industries, a private limited company under the Assam Finance (Sales Tax) Act, 1956, (hereinafter referred to in short as State Act) (since repealed), engaged itself in manufacturing/proceeding of coal into coke. As per the said Act, coal and coke are the taxable items vide Enty No. 46 of the Schedule attached under the State Act. To promote industrial growth and development of the State, the Government of Assam came with a new industrial policy by a notification dated 12. 10. 82 (for short Notification) wherein the State Government provided exemption from sales tax and octroi, concession in water and power tariff, transport and capital investment subsidy and various tax concessions. The scheme of exemption of sales tax etc. was for a period of five years on sale of raw materials and finished goods produced by the newly established Industries. To give effect the aforesaid scheme, the State of Assam passed an Act namely the Assam Industries (Sales Tax Concession) Act, 1987. The petitioner/respondent claims that it is entitled to get exemption from sales tax for the goods produced by it under the State Act as well as Central Sales Tax Act, 1956 (for short Central Act) under the provisions of Section 3b of the State Act read with Notification and Section 8 (2a) of the Central Act. Accordingly the petitioner submitted its return for the assessment period of 1986-88 before the Superintendent of Taxes, Guwahati i. e. the Assessing authority (for short A. O. ). The A. O. after proper assessment determined the tax liability of the petitioner/respondent for the assessment period of 1986-88 as nil in view of the aforesaid provisions of Section 3b of the State Act and Section 8 (2a) of the Central Act. Subsequently, all on a sudden, a show cause notice dated 6. 6. 1992 was served upon the petitioner/respondent on 17. 6. 1992 by the Assistant Commissioner of Taxes for suo moto revision of the assessment order and the petitioner/respondent replied to the said show cause notice on 28. 8. 1992. Thereafter, the Assistant Commissioner of Taxes, Zone-B, Guwahati vide order dated 28. 1. 1993 cancelled the assessment order on 31. 11. 91 which was passed by the A. O. and directed him to make fresh assessment levying due taxes and interest from the petitioner/respondent for the assessment period ending from 31. 3. 1986 to 31. 3. 1988 under the Central Act. Consequent thereupon, the A. O. issued a notice dated 1. 3. 1993 directing the petitioner to appear on 10. 3. 1993 in connection with suo motu order dated 28. 1. 1993 of the Assistant Commissioner of Taxes under Section 31 (1) of the State Act read with Section 9 (2) of the Central Act for rectification of the assessment.