TOBACCO MANUFACTURERS INDIA LIMITED Vs. COMMISSIONER OF SALES TAX BIHAR PATNA
SUPREME COURT OF INDIA (FROM: PATNA)
TOBACCO MANUFACTURERS INDIA
COMMISSIONER OF SALES TAX,BIHAR,PATNA
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Ayyangar, J. -
(1.)These two appeals are from a common judgment of the High Court of Patna dated October 5, 1956, in two petitions under Art. 226 of the Constitution and have been filed pursuant to a certificate granted by the High Court under Art. 132.
(2.)The Tobacco Manufacturers (India) Ltd., the appellants in the above appeals are an incorporated company manufacturing cigarettes and tobacco in their factory at Monghyr in the State of Bihar, and these appeals are concerned with the legality of the levy of sales-tax under the Bihar Sales-tax Act (hereafter referred to as the Act) on the appellants in respect of sales effected during the financial years 1949-50 and 1950-51. The point urged in these appeals is a very narrow one and relates to the proper construction to be placed on certain orders of the Board of Revenue passed in regard to the tax properly leviable for these two years.
(3.)The facts relevant to this are briefly these:The assessment of the appellants for the years was completed by the Superintendent of Sales Tax, Monghyr, on May 7, 1952, and the total tax liability was determined in the sum of Rs. 6,44,940-2-6 and Rs. 7,46,876-1-3 for the two assessment years 1950-51 and 1951-52 respectively. Before the assessing officer, the appellants contended that all sales effected by them as a direct result of which the goods were delivered outside the State of Bihar were exempted from tax liability under Art. 286(1) (a) of the Constitution. This objection was overruled, the reason assigned being, that the sales were completed in Bihar, and that the entire turnover of the appellants was therefore subject to tax under the Act. In taking this view the assessing authority followed a previous ruling of the Board of Revenue of the State in the Bengal Timber case (Case No. 61 of 1952). An appeal preferred to the Deputy Commissioner of Sales Tax, Bihar, by the appellants was dismissed on October 8, 1952, on the same grounds.
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