Decided on November 26,2010

Sr. Jt. Commr., C.T., Corporate Division, Kolkata -15 And Ors. Respondents


(2.)THE petitioner, Jindal (India) Limited, is a company falling within the meaning of the Companies Act, 1956 having its registered office at 2/1, Ahmed Mamuji Street, Liluah, Howrah 711 204. The petitioner is a manufacturer of cold rolled iron and steel sheets along with other items. It was initially registered under the West Bengal Sales Tax Act, 1994 (in short, "the 1994 Act") and Central Sales Tax Act, 1956 (in short, "the CST Act"). Presently, the petitioner is registered under the West Bengal Value Added Tax Act, 2003 (in short, "the VAT Act").
The petitioner manufactures cold rolled sheets out of hot rolled sheets/ strips. Both these items fall within entry (vi) of section 14(iv) of the CST Act. Section 14 of the CST Act details a list of goods of special importance in inter -State trade or commerce. Such goods are commonly known as declared goods. According to the petitioner, it, following the decision of the honourable Supreme Court in the case of State of Tamil Nadu v. Pyare Lal Malhotra : [1976] 37 STC 319 (SC) and Telangana Steel Industries v. State of Andhra Pradesh : [1994] 93 STC 187 (SC), was of the view that cold rolled sheet manufactured out of hot rolled sheet/strip would not be exigible to tax being second sale of declared goods in the same State. It was filing returns accordingly claiming deduction under section 2(40) (a) of the 1994 Act. During the course of assessment for the period four quarters ending on March 31, 1998, the assessing authority for the first time disallowed the claim of exemption on sales of cold rolled sheets and levied tax on such sale treating cold rolled sheet as a commodity different from hot rolled sheet/strip. The petitioner challenged this view of the assessing authority before this Tribunal. The Tribunal by its order dated February 28, 2002 passed in RN -167 of 2000 upheld the view expressed by the assessing authority. The Tribunal's order was challenged by the petitioner before the honourable Calcutta High Court. The honourable Calcutta High Court by its order dated September 11, 2003 confirmed the order of this Tribunal (Jindal (India) Ltd. v. Assistant Commissioner, Commercial Taxes : [2004] 136 STC 492 (Cal)). The petitioner moved a special leave petition before the honourable apex court and during the pendency of the special leave petition, it continued to claim sale of cold rolled sheets as second sale.

(3.)MOREOVER , it moved the State Government to resolve the dispute. According to the petitioner, section 22 of the 1994 Act was amended by the Legislature by West Bengal Act VI and Act XV of 2004 in terms of notification No. 168 FT dated February 1, 2006. The amendment was given effect from April 1, 1997. It has been submitted in this petition that after issue of the notification the petitioner was directed by the respondent to pay the amount of tax on sales of cold rolled sheets after setting off of the amount the petitioner paid at the time of purchase of hot rolled sheets/ strips out of which the cold rolled sheets had been manufactured and sold.

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