HINDUSTAN PAPER CORPORATION LTD Vs. COMMISSIONER OF TAXES

JUDGEMENT

(1.) This writ petition under Article 226 of the Constitution has been preferred by the Hindustan Paper Corporation Ltd., for short, the Corporation, whereby the order dated 23.12.1996 passed by the Deputy Commissioner of taxes, Silchar Zone, Silchar has been challenged.

(2.) The facts, in brief, are that the Corporation procures bamboos from the various districts of Assam and the neighbouring States of Tripura and Mizoram for the purpose of manufacturing papers in the two units at Panchgram and Nagaon. The Corporation is registered under the Assam General Sales Tax Act and for the accounting year 1993-94, they submitted their returns and assessment was accordingly made by the Superintendent of Taxes, Hailakandi. Subsequently a notice was issued to the petitioner Corporation to show cause stating that in the assessment made earlier, there were some errors in the sense that freight was not included in the purchase price of bamboos which is in contravention of the provisions of Section 2(30) of the Assam General Sales Tax Act. The Corporation submitted their reply and after hearing, the impugned order was passed whereby the Deputy Commissioner of Taxes held : (1) that the element of transport charges/ freight to be included in the purchase price of the home grown bamboos/collected from the State of Assam. (2) So far the bamboos which are supplied by the suppliers from Mizoram and Tripura and delivered at the mill-gate within the State of Assam, it will amount to sale because delivery was effected in Assam and as such the same shall be liable to tax under the Assam General Sales Tax Act, for short the Act. The earlier order of assessment was accordingly set aside and the matter was remitted back for fresh assessment. Hence the present writ petition.

(3.) So far the inclusion of freight charges in the purchase price of bamboo or bamboos purchased from the State of Assam is concerned, Dr. A.K.Saraf, learned counsel for the petitioner submits that the petitioner Corporation does not dispute the above order. The sole grievance of the petitioner is in respect of the bamboos purchased from Tripura and Mizoram, which have been treated as articles purchased within State although these being inter State sale in view of the provision of Article 286 of the Constitution and Section 3(a) of the Central Sales Tax Act, the respondent authority has no jurisdiction or power to levy tax on such purchases.