RAPIDUR INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioners, a company registered under the Companies Act, 1956, challenge in these writ petitions the Assessment Orders passed by the second respondent, Sales Tax Officer, Panaji, on 26th June, 1986 and 30th December, 1985 in respect of the assessment years ending on 31 December, 1981, 31st December, 1982, 31st December, 1983 and 31st December, 1984 as well as the Notice of Demand dated 30th December, 1985, and further seek the refund of the Central Sales Tax allegedly levied and collected from them without the authority of law in the said assessment years. The issues raised are basically the same and hence, this common judgment.

(2.) We may state the relevant and undisputed facts. Section 10(1) of the Goa, Daman and Diu Sales Tax Act, 1964, for short the Goa Sales Tax Act, provides that no tax shall be payable under the said Act on the sale of the goods specified in the Second Schedule subject to the conditions and exceptions set out therein. In exercise of the powers under section 10(2) the first respondent added Entry 68 to the Second Schedule by a Notification dated 2nd November, 1972 an goods manufactured, processed or assembled in the Union Territory of Goa, Daman and Diu at the point of sale by Small Scale Industries were totally exempted from the local sales tax for a period of five years from the date of its registration with the Directorate of Industries, Government of Goa, Daman and Diu. Then, by another Notification dated 5th July, 1983, Entry 68 was again amended and goods manufactures, processed or assembled in the Union Territory of Goa, Daman and Diu by a Small Scale Industry set up on or after the date of coming into force of the said Notification which has not gone into production and has not effected any sales of such goods manufactured, processed or assembled by it on any day prior to the day of coming into force of the Notification, at the point of sale made by such Small Scale Industries were exempted for a period of 15 years from the first sale of such goods effected by it, or on or after the date of its registration under the Goa Sales Tax Act. In its turn, section 8(2-A) of the Central Sales Tax Act, 1956 provides that no Central Sales Tax is payable under the said Act by a dealer or on his turnover if the turnover or any part thereof relates to the sale of any goods, the sale or as the case may be, the purchase which is under the sales tax law of the appropriates State exempt from generally.

(3.) The petitioners are a Small Scale Industry registered with the Directorate of Industries, Government of Goa, Daman and Diu, holding a certificate of registration dated 3rd March, 1978. They claimed exemption from payment of the Central Sales Tax under the provisions of section 8(2-A) but the Sales Tax Authorities rejected such claim, and therefore, the petitioners filed a Writ Petition, being Writ Petition No. 21/84, in this Court challenging the Order of assessment dated 28th December, 1983 pertaining to the assessment year ending on 31st December, 1979. They sought the quashing of the said Order and also prayed for the refund of the amount levied and collected by way of Central Sales Tax for the assessment year 1979 as well as for the period commencing in 1978 and ending in 1983. At the time of the admission of the said writ petition, the prayer for refund was not however pressed and rule was issued, on 20th February, 1984, only as regards the reliefs claimed other than the said refund. The said Writ Petition came to be heard and disposed of on 13th December, 1984. The rule was made absolute, and accordingly, the Assessment Order of, 28 December, 1983 was quashed and it was ordered that petitioners be granted exemption from the Central Sales Tax on their Inter State sales under section 8(2-A).