STATE OF WEST BENGAL Vs. ANIL KRISHNA PAUL

JUDGEMENT

(1.) BY the judgment dated August 6, 1992 [reported in [1993] 88 STC 337. ] a Division Bench of this Court held that tax cannot be levied on "gudakhu" or "gurakhu" as the expression "tobacco" covers it. Accordingly, it was held that the respondent/writ petitioner is entitled to exemption under the West Bengal Sales Tax Act and also under the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1972. The consequences of the said order is that the assessments which had been made stood set aside and quashed and the petitioner is entitled to the refund of the sum that was collected by the sales tax authorities under the provisions of the aforesaid Acts.

(2.) THIS application has been made by the respondent/writ petitioner for clarification of the said order that the respondent/writ petitioner is entitled to interest on the sums refundable under the Bengal Finance (Sales Tax) Act, 1941, West Bengal Sales Tax Act, 1954 and Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1972. The respondent/writ petitioner has also asked for a direction for payment of interest from 1975 onwards at the rate of 2 per cent per annum until payment on the sums refundable under the Bengal Finance (Sales Tax) Act, 1941, West Bengal Sales Tax Act, 1954 and Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1972.

(3.) IN view of the judgment referred to above, the assessments which had been made denying the exemption have to be revised and the respondent/writ-petitioner will be entitled to refund of the said sums of Rs. 9,825. 50 and Rs. 49,921. 74. It is stated that the said amounts have not yet been refunded. In the judgment of the Division Bench referred to above, there was no direction of payment of any interest. Our attention has been drawn to section 10b of the Bengal Finance (Sales Tax) Act, 1941 and section 8b of the West Bengal Sales Tax Act, 1954.