RIANGDO VENEERS PRIVATE LTD Vs. STATE OF MIZORAM

JUDGEMENT

(1.) THIS writ petition under Article 226 of the Constitution of India has been filed so as to challenge the show cause notice issued by the Superintendent of Taxes, Aizawl under Section 32 (1) of the Mizoram Value Added Tax Act, 2005. (In short "mvat Act") , asking as to why the materials supplied by the petitioner to the Chief Engineer, Power and Electricity Department during the year 2008 shall not be subjected to assessment for payment of VAT.

(2.) I have heard Shri Michael Zothankhuma, learned counsel for the petitioner and also heard Mr. N. Sailo, learned Addl. Advocate General, Mizoram. Also perused the rival pleadings and documents filed with the writ petition and State affidavit.

(3.) THE learned counsel for the petitioner submitted that all inter-State sale or purchase that takes place in the course of inter-State trade or commerce are exempted under Section 40 of the Mizoram VAT Act, 2005. The learned counsel also submitted that since the petitioner has already paid Central Sale Tax it cannot be taxed twice. The learned counsel also submitted that since the order for supply of goods was placed at the registered office of the petitioner at Guwahati (Assam) and since the goods were transported from its factory at Barapani (Meghalaya) and delivered at Aizawl in the State of Mizoram the transaction is covered under Section 3 (a) of the Central Sales Tax Act. In support of this submission, the learned counsel has relied upon the judgment of the Hon'ble Supreme Court rendered in Union of India Vs. K. G. Khosla and Co. Ltd. , reported in (1979) 2 SCC 242 and the judgment of State of Orissa Vs. K. B. Saha and Sons Industries (P) Ltd. reported in (2007) 9 SCC 97.