BAJRANGBALI COKE BRIQUETTING INDUSTRIES Vs. STATE OF BIHAR

JUDGEMENT

(1.) These writ applications have been filed on behalf of different petitioners for quashing a communication dated 10th January, 1986, issued by the Deputy Commissioner, Commercial Taxes, Bihar, to the different Assistant Commissioners, Commercial Taxes, to treat briquettes prepared from coal-dust as "unspecified goods" over which sales tax payable was at the rate of 8 per cent.

(2.) It is the case of the petitioners that they manufacture coke briquettes meant for domestic consumption by mixing coal-dust, soil and molasses by mechanical process. According to the petitioners, as the coke briquettes are prepared from coal-dust, it will be deemed to be declared goods under Section 14(ia) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") over which sales tax cannot exceed 4 per cent of the sale or purchase price thereof, in view of Section 15(a) of the Act.

(3.) In the counter-affidavit filed on behalf of the respondent-State, which has been sworn by the Commercial Tax Officer, the assertion made on behalf of the petitioners regarding the ingredients and process of manufacturing of the coke briquettes has not been denied. It has been stated: The deponent further states and submits that coal briquettes are not coal nor coke as these are manufactured mechanically by mixing coal-dust, soil and molasses. As such it is not in dispute, in the present writ applications, that the petitioners are manufacturing briquettes by mixing coal-dust with soil and molasses which are being used for domestic use. The controversy is only as to whether such briquettes can be held to be either coal or coke so as to be held to be declared goods within the meaning of Section 14(ia) of the Act.