BURMAH SHELL OIL STORAGE AND DISTRIBUTING CO OF INDIA LIMITED STANDARD VACUUM OIL CO Vs. COMMERCIAL TAX OFFICER:COMMERCIAL TAX OFFICER
LAWS(SC)-1960-9-27
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on September 27,1960

BURMAH SHELL OIL STORAGE AND DISTRIBUTING COMPANY OF INDIA LIMITED Appellant
VERSUS
COMMERCIAL TAX OFFICER Respondents





Cited Judgements :-

APHALI PHARMACEUTICALS LIMITED VS. STATE OF MAHARASHTRA [LAWS(SC)-1989-9-17] [REFERRED TO]
FAIRMACS TRADING COMPANY VS. STATE OF ANDHRA PRADESH [LAWS(APH)-1974-2-10] [REFERRED TO]
SPARES CORPORATION VISAKHAPATNAM VS. STATE OF A P [LAWS(APH)-1994-12-57] [REFERRED TO]
A S NARAYANA VS. COMMERCIAL TAX OFFICER [LAWS(APH)-1994-12-29] [REFERRED TO]
GILLANDERS ARBUTHNOT AND CO LTD VS. COMMERCIAL TAX OFFICER [LAWS(CAL)-1962-7-20] [REFERRED TO]
DHIRAJ LAL MEHTA VS. COMMISSIONER OF COMMERCIAL TAXES [LAWS(CAL)-1962-9-20] [REFERRED TO]
BHARAT HANDICRAFTS PRIVATE LTD VS. STANDARD BRANDS LTD [LAWS(CAL)-1963-6-13] [REFERRED TO]
URMILA KOTHABI VS. TOWN MUNICIPAL COUNCIL KALGHATGI [LAWS(KAR)-1976-9-16] [REFERRED TO]
C P TIMBER WORKS VS. COMMISSIONER OF SALES TAX [LAWS(MPH)-1964-3-16] [REFERRED TO]
GANPAT PANNALAL VS. COMMISSIONER OF SALES TAX [LAWS(MPH)-1967-1-11] [REFERRED TO]
ASSOCIATED CEMENT CO LTD VS. COMMISSIONER OF SALES TAX [LAWS(MPH)-1975-10-9] [REFERRED TO]
RANJIT SHIPPING P LTD VS. STATE OF WEST BENGAL [LAWS(CAL)-1980-7-37] [REFERRED TO]
COFFEE BOARD VS. STATE OF KARNATAKA [LAWS(KAR)-1989-7-22] [REFFERRED TO ,REF.; 7.]
V RADHAKRISHNAIH SETTY AND SONS VS. COMMISSIONER OF COMMERCIAL TAXES [LAWS(KAR)-1993-11-6] [REFERRED TO]
LILABEN VS. STATE OF GUJARAT [LAWS(GJH)-1993-6-31] [REFERRED TO]
SHAMIM AHMAD ALVI VS. AZIZUL RAHMAN KHAN [LAWS(ALL)-1972-3-24] [REFERRED TO]
BAPU LAL MANSUKH LAL THAKKAR MANSUKH LAL THAKKAR CENTRAL VS. ADDITIONAL DISTRICT JUDGE [LAWS(ALL)-2005-7-231] [REFERRED TO]
GREAT EASTERN SHIPPING COMPANY LTD VS. STATE OF KARNATAKA [LAWS(KAR)-1999-6-24] [REFERRED TO]
SHRI RAMAKRISHNA MILLS LTD VS. ASST COLLECTOR OF CUSTOMS [LAWS(KER)-1986-5-9] [REFERRED TO]
NARANG HOTELS AND RESORTS PVT LTD VS. STATE OF MAHARASHTRA [LAWS(BOM)-2003-10-18] [REFERRED TO]
DEEPMANI VS. STATE OF MAHARASHTRA [LAWS(BOM)-2011-1-160] [REFERRED TO]
NEW RAJASTHAN MINERAL SYNDICATE VS. STATE OF PUNJAB [LAWS(P&H)-1964-10-14] [REFERRED TO]
MOHAN LAL MOTI LAL VS. ASSESSING AUTHORITY BHATINDA [LAWS(P&H)-1965-1-11] [REFERRED TO]
KATIRA CONSTRUCTION LTD VS. UNION OF INDIA [LAWS(GJH)-2013-2-162] [REFERRED TO]
KATIRA CONSTRUCTION LTD VS. UNION OF INDIA [LAWS(GJH)-2013-3-144] [REFERRED TO]
STATE OF KERALA VS. COCHIN COAL COMPANY LIMITED [LAWS(SC)-1960-10-22] [RELIED ON]
MOHAMMAD SERAJUDDIN NANDARAM HUNTARAM VS. STATE OF ORISSA [LAWS(SC)-1975-4-30] [RELIED ON]
MADRAS MARINE AND CO VS. STATE OF MADRAS [LAWS(SC)-1986-7-30] [FOLLOWED]
NATIONAL TR ACTORS HUBLI VS. COMMISSIONER OF COMMERCIAL TAXES BANGALORE [LAWS(SC)-1971-1-9] [REFERRED TO]
INDIA COPPER CORPORATION LIMITED VS. STATE OF BIHAR [LAWS(SC)-1960-11-17] [REFERRED]
COFFEE BOARD BANGALORE VS. JOINT COMMERCIAL TAX OFFICER MADRAS [LAWS(SC)-1969-10-31] [REFERRED TO]
GRAMOPHONE COMPANY OF INDIA LIMITED VS. BIRENDRA BAHADUR PANDEY [LAWS(SC)-1984-2-20] [REFERRED TO]
S SUNDARAM PILLAI KOUSALAYA DEVT MURUGESA MUDALIAR N S DHANALAKSHMI AMMAL THAHIRA BEEVI M BALAKRISHNAN K R KRISHNAN VS. V R PATTABIRAMAN:P LAKSHMINARAYANA CHARYA:SELVARAJ CHETTIAR:B S RAMACHARI:R A MUTHIAH NADAR:FATHIMA BAI:P BHANUMATT [LAWS(SC)-1985-1-27] [RELIED ON]
YEDIDA CHAKRADHARARAO DEAD VS. STATE OF ANDHRA PRADESH [LAWS(SC)-1990-3-50] [REFERRED TO]
CALTEX INDIA VS. STATE OF KERALA [LAWS(KER)-1961-6-24] [REFERRED TO]
M SUDARSANAN IYENGAR AND SONS VS. STATE OF KERALA [LAWS(KER)-1961-7-38] [REFERRED TO]
BEN GORM NILGIRI PLANTATIONS CO COONOOR VS. SALES TAX OFFICER SPECIAL CIRCLE ERNAKULAM [LAWS(KER)-1961-8-30] [REFERRED TO]
L MARY YOHANNAN VS. N K SREEKUMARAN NAIR FB [LAWS(KER)-1991-10-35] [REFERRED TO]
R P G INDUSTRIES LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-2011-3-53] [REFERRED TO]
EIH LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-2011-8-107] [REFERRED TO]
ALEMBIC PHARMACEUTICALS LIMITED VS. CHIEF CONTROLLING REVENUE AUTHORITY [LAWS(GJH)-2013-11-26] [REFERRED TO]
ASSOCIATED AGENCY VS. STATE OF KERALA [LAWS(KER)-1961-3-28] [REFERRED TO]
CALTEX INDIA LTD VS. EXCISE AND TAXATION OFFICER [LAWS(J&K)-1962-1-3] [REFERRED TO]
INDIAN AIRLINES LIMITED VS. COMMISSIONER OF CUS., BANGALORE/COCHIN [LAWS(CE)-2004-5-171] [REFERRED TO]
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TAHER ALI INDUSTRIES AND PROJECTS (P) LTD. VS. STATE OF TAMIL NADU AND ANOTHER [LAWS(MAD)-2011-9-403] [REFERRED TO]
DEEPMANI VS. THE STATE OF MAHARASHTRA [LAWS(BOM)-2010-1-201] [REFERRED TO]
PAUL MERCHANTS LTD. VS. COMMISSIONER OF C. EX., CHANDIGARH [LAWS(CE)-2012-11-47] [REFERRED TO]
MICROSOFT CORPORATION (I) (P) LTD VS. COMMR. OF S.T. [LAWS(CE)-2014-9-4] [REFERRED TO]
WARNER BROS. ENTERTAINMENT INC. AND ORS. VS. MR. SANTOSH V.G. [LAWS(DLH)-2009-4-324] [REFERRED TO]
PIYARE LAL VS. THE DEPUTY COMMISSIONER AND ANR. [LAWS(P&H)-1965-10-40] [REFERRED TO]
SRI RAMAKRISHNA MILLS (CBE) LTD AND OTHERS VS. THE ASST. COLLECTOR OF CUSTOMS [LAWS(KER)-1986-6-52] [REFERRED TO]
A.T.E. ENTERPRISES PVT. LTD. VS. COMMISSIONER OF SERVICE TAX [LAWS(CE)-2015-1-148] [REFERRED TO]
MICROSOFT CORPORATION (I) (P) LTD. VS. COMMISSIONER OF SERVICE TAX, NEW DELHI [LAWS(CE)-2011-11-128] [REFERRED TO]
STATE OF ANDHRA PRADESH VS. ITC BHADRACHALAM PAPER BOARDS LIMITED [LAWS(APH)-2014-12-147] [REFERRED TO]
SHRI RAM CHANDRA MISSION YOGASHRAM AND ORS. VS. STATE OF U.P. AND ORS. [LAWS(ALL)-2015-7-262] [REFERRED TO]
OANALI ISMAILJI SADIKOT VS. STATE OF GUJARAT [LAWS(GJH)-2016-3-8] [REFERRED TO]
BRIJENDRA ENTERPRISE C/O SHAIL ENTERPRISE VS. STATE OF GUJARAT [LAWS(GJH)-2016-3-146] [REFERRED TO]
MADHUCON PROJECTS LIMITED AND ORS VS. CUSTOMS, EXCISE AND SERVICE TAX SETTLEMENT COMMISS [LAWS(APH)-2016-6-53] [REFERRED]
MURJIBHAI VISHRAM VARSANI VS. ADAM ALIMAMAD KUMBHAR & 1 [LAWS(GJH)-2017-2-5] [REFERRED TO]
NIRMAL SINGH VS. DEPUTY COMMISSIONER HOSHIARPUR [LAWS(P&H)-1969-11-38] [REFERRED]
ANIL VASUDEV RAJGOR VS. STATE OF GUJARAT [LAWS(GJH)-2017-4-85] [REFERRED TO]
VERIZON COMMUNICATION INDIA PVT. LTD. VS. ASSISTANT COMMISSIONER [LAWS(DLH)-2017-9-98] [REFERRED TO]
COMMISSIONER OF SERVICE TAX, MUMBAI VS. A.T.E. ENTERPRISES PVT. LTD. [LAWS(BOM)-2017-7-380] [REFERRED TO]
SANDEEP PATIL VS. UNION OF INDIA [LAWS(BOM)-2019-10-24] [REFERRED TO]
NIRMAL KUMAR PARSAN VS. COMMISSIONER OF COMMERCIAL TAXES [LAWS(SC)-2020-1-54] [REFERRED TO]
MANISH KUMAR VS. UNION OF INDIA [LAWS(SC)-2021-1-34] [REFERRED TO]
MRF LIMITED VS. STATE OF KERALA [LAWS(KER)-2018-9-392] [REFERRED TO]


JUDGEMENT

- (1.)These two appeals on a certificate under Art. 132(1) of the Constitution have been filed respectively by the Burmah Shell Oil Storage and Distributing Co., of India, Ltd., and the Standard Vaccum Oil Company (in this judgment referred to as the appellant-Companies) against a common judgment of the High Court of Calcutta dated December 7, 1956. The High Court was moved for writs of mandamus, prohibition and certiorari under Art. 226, but the petition was dismissed by D. N. Sinha, J. The matter arises out of assessment to sales tax on sale of motor spirit for aviation purposes (shortly, aviation spirit) supplied by the appellant-Companies to aircraft bound for countries abroad, under the Bengal Motor Spirit Sales Taxation Act, 1941, as amended by S. 2 (a) (i) of the Bengal, Motor Spirit Sales Taxation (Second Amendment) Act, 1954. The Commercial Tax Officer, the Commissioner of Commercial Taxes and the State of West Bengal have been joined as respondents in this Court, as they had previously been joined in the High Court.
(2.)The appellant-Companies deal in Petroleum and Petroleum products, and carry on business at Calcutta. They maintain supply depots at Dum Dum Airport from which aviation spirit is sold and delivered to aircraft proceeding aboard and belonging to several Companies. It appears that such sales were treated by the sales tax authorities in the State of Bombay as not falling within the taxing Acts in force in the Bombay State by reason of the provisions of Art. 286 of the Constitution. The sales tax authorities in West Bengal, however, took a different view of the matter, and after sundry procedure resulting in assessment of tax, presented a demand notice for the tax assessed which was paid under protest by the appellant Companies. The appellant Companies filed petitions under Art. 226 of the Constitution in the High Court of Calcutta questioning the legality of the imposition but without success. They have now filed these appeals after obtaining a certificate, as already stated.
(3.)The contention in this Court, as they were also before the High Court, are that such sales are made in the course of export of such aviation spirit out of the territory of India, that they take place outside the State of West Bengal, that inasmuch as aviation spirit is delivered for consumption outside West Bengal, the sales cannot fall within the Explanation to sub-cl. (a) of the first clause of Art. 286, and that unless they can be said to become "Explanation Sales" the power to tax does not exist. It is argued in support of the last contention that there is not even an averment in the reply of the respondents before the High Court that aviation spirit is delivered for consumption within West Bengal.
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