COMMISSIONER OF SALES TAX Vs. PUNJAB COAL AND KUTTI FARM
LAWS(MPH)-1980-10-23
HIGH COURT OF MADHYA PRADESH
Decided on October 06,1980

COMMISSIONER OF SALES TAX Appellant
VERSUS
PUNJAB COAL AND KUTTI FARM Respondents

JUDGEMENT

- (1.)THE Tribunal (Board of Revenue, Madhya Pradesh) has stated the case and referred the following question to this Court for opinion :
Whether, under the facts and circumstances of the case, 'nalidar coal' is coal and will be covered by entry No. 1 of Part III of Schedule II to the Act?

(2.)THE assessee deals in nalidar coal and kutti and was assessed to sales tax for Divali year 1963-64. The turnover of nalidar coal was assessed to tax at the rate of 5 per cent and 6 per cent as per the rate for residuary goods under Part VI of Schedule II to the Act. The first appeal before the Additional Appellate Assistant Commissioner was dismissed. The matter came before the Tribunal and it was contended on behalf of the assessce-appellant that nalidar coal was coal for the purpose of item No. 1 of Part III of Schedule II to the Act and tax at the rate of 2 per cent only was chargeable thereon. The Tribunal accepted the argument and allowed the appeal of the assessee. At the instance of the Commissioner of Sales Tax the above question has been referred to us for opinion.
(3.)THE statement of case shows that it was found as a fact that nalidar coal is made of charcoal dust and of coal-dust mixed with some earth and water. Nalidar coal is used as a. fuel and the combustible ingredient in nalidar coal is coal or charcoal dust. The small proportion of earth and water is used only to make an adhesive mixture so that it can be given the shape of a brick or a cylinder. In commercial and popular use it is treated as coal and used as a fuel.


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.