JINDAL DYECHEM INDUSTRIES PVT LTD Vs. SALES TAX OFFICER ENFORCEMENT

JUDGEMENT

(1.) The facts of this case are quite remarkable if not extraordinary.

(2.) The Petitioner is carrying on business primarily of buying and re-selling bullion (despite its name) besides dealing in other items. During the relevant assessment year 2001-2002, the Petitioner says that its total turnover in Delhi was about Rs. 244 crores which included bullion sold in Delhi amounting to about Rs. 238 crores. The Petitioner says that it paid the appropriate sales tax on this amount.

(3.) On or about 12th January 2001 the State of Rajasthan introduced a Compounded Levy Scheme for Bullion Traders (for short the Scheme). In terms of the Scheme bullion traders could opt for compounding their tax liability in respect of their sales of bullion within the State on payment of a composition amount. In the case of the Petitioner, falling in the residual category, the composition amount payable for 2000-2001 was 125% of the tax paid in the financial year 1999-2000 subject to a minimum of Rs. 100 lakhs.