Dipak Kumar Sen, J. - (1.) The transactions in dispute are supplies of imported alcoholic liquor to foreign vessels and foreign going ships sailing out of the Port of Calcutta and to foreign Consulates, in Calcutta. It is not in dispute that such liquor is imported free of duty under an open general licence and are meant only for re-export as ship's stores or for consumption in foreign Embassies and Consulates and not for domestic consumption. Between importation and re-export such liquor is kept in an approved bonded warehouse under the direct supervision, control and seal of the Customs Authorities. Even after the said liquor is delivered to a foreign going vessel they still remain under the supervision, control and seal of the Customs Authorities till the vessel leaves the territorial waters of India and the liquor can only be consumed beyond the territorial limits or within diplomatic or consular premises. Such transactions are governed by Clause 11 (d) of the Import Control Order which provides as follows :-- "11 (d) by transhipment, or imported and bonded on arrival for re-export as ships stores or otherwise to any country outside India, except Nepal, Tibet and Bhutan or imported and bonded on arrival for re-export as aforesaid but subsequently released for use of Diplomatic Personnel. Consular Officers in India and the officials of the United Nations Organisation and its specialised agencies who are exempt from payment of duty under Ministry of Finance (D. R.) Notification No. 3 dated the 8th January, 1957 and United Nations (Privileges and Immunities) Act 1947, respectively."
(2.) The case of the petitioner is that the said transactions do not come within the mischief of the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1972 (hereinafter referred to as the said Act) promulgated for levy of taxes on entry of goods of certain kinds into the Calcutta Metropolitan Area for consumption, use or sale therein. Sections 8 and 9 of the Act provide as follows:-- "8. Exemption from tax on goods belonging to certain consular officers -- Every specified goods brought into the Calcutta Metropolitan Area by or on behalf of such diplomatic or consular officers, stationed in that Area, as may be specified in this behalf by the State Government by any special or general order, shall be exempted from the tax leviable under this Act to such extent and subject to such conditions as may be specified in the said order. "9. Exemption from tax on goods meant for export -- Subject to such rules, not inconsistent with the provisions of this Act, as the State Government may make in this behalf, any specified goods which are brought into the Calcutta Metropolitan Area for the immediate export thereof may, at the option of the dealer, be exempted from the tax leviable thereon under this Act, if such goods are conveyed direct from the place of entry into the Calcutta Metropolitan Area to the place of export under such supervision and on payment of such fees therefore, as may be specified by the said rules."
(3.) The petitioner's grievance is that the Entry Tax Authorities of the Government of West Bengal have been seeking to levy entry tax in respect of liquors which have been and are being imported into India for being re-exported in the manner as aforesaid. The Entry Tax Authorities have their check posts at the Port Commissioner's establishment at the Calcutta Port and they insist that the petitioner and the other importers fill up a form being Form No. IV stating particulars of the liquor imported and meant for warehousing in Calcutta under Bond and at that stage they also make assessments of entry tax in a form being Form No. V which also contains a demand for the tax assessed. Only after such tax is paid and certified transportation of the liquors are allowed from the jetties or docks of the Port Commissioners to bonded warehouses. The petitioners contend that the said liquor imported solely for re-export do not enter the Metropolitan area of Calcutta for the purpose of consumption, use or sale therein and entry tax is not leviable thereon.;