HARYANA BRIQUETTES INDUSTRIES Vs. STATE OF HARYANA

JUDGEMENT

(1.) THE petitioner, which is a partnership concern, is registered with the sales tax authority under the Haryana General Sales Tax Act and the Central Sales Tax Act (hereinafter called the "act" and the ''central Act" respectively ). The petitioner deals in briquette coal industry and sells the coal briquettes within the State of Haryana. Returns were filed for the year 1983-84 and tax was also paid as had earlier been done at the rate of 4 per cent on briquettes sold within the State of Haryana. It is further averred that the petitioner received a notice from the Assessing Authority, respondent No. 2, requiring the petitioner to produce material in support of the returns filed and for verification of the accounts. It appears that the Assessing Authority was satisfied with the accounts maintained but the Assessing Authority was of the view that in accordance with the instructions issued by respondent No. 1, the coal briquettes may be taxed at the rate of 8 per cent instead of 4 per cent. The explanation given by the petitioner was not accepted and the Assessing Authority imposed tax on coal briquettes at the rate of 8 per cent instead of 4 per cent. Through this petition, the petitioner has challenged the imposition of tax at the rate of 8 per cent and has also called in question the legality of enhanced demand of tax made on the basis of the imposition of tax at the rate of 8 per cent.

(2.) ON 10th July, 1985, on the basis of the Judgment in Khanna Coke Industries, Moradabad v. Assistant Commissioner (Judicial), Sales Tax, Moradabad 1978 Tax LR 2129 (All.) the case was admitted and was ordered to be heard at an early date.

(3.) WRITTEN statement has been filed on behalf of respondents Nos. 1 and 2, in which some preliminary objections have been taken. On merits, the action is sought to be supported on the plea that the briquettes is not coal and this is not covered by item (ia) of Section 14 of the Central Act, but it is a different commodity made of coal-dust, molasses and clay and thus it requires to be treated as a separate commercial commodity for the purpose of taxation law.