SHYBUN LYNGDOH Vs. STATE OF ASSAM

JUDGEMENT

(1.) THE petitioner is a registered dealer of coal under the Central Sales Tax Act, 1956, having its registered office in the State of Meghalaya and procure orders for supply of coal from various customers outside the northeastern region and, then, dispatches, in the course of inter State trade and commerce, coal from Meghalaya to various other States like U. P. , Punjab and others. The coal, which get sold to such customers in the States of U. P. , Punjab, etc. , are dispatched from Meghalaya by road upto the railway yard, at Jagiroad, for being further carried to its destination by railway for onward dispatch to other State, such as, Punjab, Haryana, etc. The writ petitioner's grievance is that while making such sales in the course of inter-State trade and commerce, the petitioner pays necessary sales tax in the State of Meghalaya and also deposits necessary royality, payable to the Directorate of Mineral Resources, Meghalaya, but respondent No. 3, namely, Superintendent of Taxes, Jagiroad Check Post, which falls in Assam, has not been allowing the petitioner's vehicles, loaded with coal to be carried to the railway yard, at Jagiroad, meant for being transported to other States of the country, to cross the barriers of the Check Post, at Jagiroad, without depositing the security in advance. Contending that such demand of security is in violation of Assam Value Added Tax, 2003 (in short "the said Act"), the petitioner has, with the help of the present writ application made under Article 226 of the Constitution of India, sought for issuance of appropriate Writ (s) declaring the demand of security by respondent No. 3 as illegal and without jurisdiction and commanding the respondents not to insist on deposit of security in respect of the vehicles carrying the petitioner's coal sold to various customers in different parts of the country and passing, in the course of inter-State trade and commerce, through the State of Assam. It is also the grievance of the petitioner that though no written order has been issued to the petitioner as regards the demand of security by the respondent No. 3, but on making an inquiry, in this regard, the petitioner has learnt that the demand of security is being made by the respondent No. 3 on instructions issued by the respondent No. 2, namely, Commissioner of Taxes, Assam, directing the Superintendent of Taxes, Jagiroad Check Post, not to allow vehicles, carrying coal, to cross the barrier of Check Gate, at Jagiroad, unless and until a bank draft or pay order is deposited, in advance, with the Superintendent of Taxes, at the said Check Gate, for the coal so carried.

(2.) WHILE moving this writ petition, the petitioner had also sought for necessary interim directions restraining the respondents from demanding and/or collecting security from the vehicles, which carry the petitioner's coal to Jagiroad railway yard for dispatch by railways to other States of the country.

(3.) HAVING heard both sides on the prayer for interim directions, which the petitioner had made, the Court, on 13. 03. 2006, passed, inter alia, interim directions, which read as under :