SIEMENS (INDIA) LIMITED Vs. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES
LAWS(CAL)-1976-5-40
HIGH COURT OF CALCUTTA
Decided on May 28,1976

SIEMENS (INDIA) LIMITED Appellant
VERSUS
ASSISTANT COMMISSIONER OF COMMERCIAL TAXES Respondents

JUDGEMENT

- (1.)An interesting point of procedure under the Bengal Finance (Sales Tax) Act, 1941, falls for consideration in this application under Article 226 of the Constitution. The petitioner is an existing company incorporated under the Companies Act. The petitioner is a manufacturer of and dealer in electrical goods, heavy engineering machineries, etc. The petitioner is a dealer within the meaning of Section 2(c) of the Bengal Finance (Sales Tax) Act, 1941. The petitioner has also a registration certificate under the Central Sales Tax Act, 1956.
(2.)It is the case of the petitioner that the petitioner entered into contracts with several parties including the Director-General of Supplies and Disposals, the Indian Railways, M/s. Hindustan Steel Limited, Durgapur Steel Plant, Durgapur, for the supply of the electrical goods from time to time as per orders placed by the aforesaid parties. In the said contracts, there were specifications as to import of goods from West Germany and in terms of the contracts the petitioner placed the indents with the foreign parties indicating the names of the parties for whom the goods were imported together with their purchase order references, import licences, etc. According to the contracts, the petitioner states, the goods were to be manufactured in West Germany as per the specification. After verification and inspection by the representatives of the said D.G.S. & D. and the Indian Railways the inspection certificates were issued. It is not necessary to refer in detail, for the purpose of this application, to the other terms and conditions of the said contracts.
(3.)The petitioner in the course of the assessment proceedings for the period 4 quarters ending 30th September, 1964, claimed before the Commercial Tax Officer, exemption under Section 27(l)(a)(ii) of the said Act being the sales made in the course of import as the movement of the goods under the contracts was as a result of the covenant or incidental to the contracts of sales. For the aforesaid assessment period 4 quarters ending 30th September, 1964, the petitioner claimed under Section 27(l)(a)(ii) of the said Act, the sum of Rs. 50,11,639.88 being the sales effected in the course of import into India. The petitioner relied on the decision in the case of K.G. Khosla & Co. Pvt. Ltd. v. Deputy Commissioner of Commercial Taxes, Madras Division [1966] 17 S.T.G. 473 (S.C.). The Commercial Tax Officer, however, allowed only out of the total claim, a sum of Rs. 29,392.98 and rejected the balance amount of Rs. 49,82,246.90. The Commercial Tax Officer in his order dated 31st August, 1968, observed, inter alia, as follows:
The dealer appeared to have claimed Rs. 50,11,639.88 on the ground that the sales were effected in the course of import. In this matter the dealer sought to rely on exemption under Section 27(l)(a)(ii) of the B.F. (S.T.) Act, 1941, and the decision of the Supreme Court in the case of K.G. Khosla & Co. v. Deputy Commissioner of Commercial Taxes, Madras [1966] 17 S.T.C. 473 (S.C.). The relevant contracts and the correspondence, etc., were checked in the light of the decision of the Honourable Supreme Court, which were produced by the dealer. It appeared to me that some and except the undernoted cases, others were not identical to the decision of the Honourable Supreme Court as mentioned above:
(1) Damodar Valley Corporation as per invoice No. 2021/0010 dt. 10-12-63 Rs. 5,292.00 (2) do. as per invoice No. 2021/0156 dt. 9-4-64 Rs. 4,307.00 (3) do. as per invoice No. 2031/0344 dt. 19-8-64 Rs. 352.80 (4) D.E. (Equipment) Electrification Circle, Calcutta, as per invoice No. 2912/0003 dt. 10-6-64 Rs. 18,041.53 ______________ Rs. 27,993.33 ______________
Hence the claim mentioned was allowed for Rs. 29,392.98 and the remaining amount was disallowed and added back to Balance (A).

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