2012 (12) TMI 962 - HC - VAT and Sales Tax

High Court rules on refund for excess tax paid on calcined petroleum coke for inter-State trade.

The GAUHATI HIGH COURT addressed the refund issue of excess tax paid by dealers on raw petroleum coke converted to calcined petroleum coke for inter-State ... Refund of the excess amount paid to the Sales Tax Department, Government of Assam - Held that:- Raw petroleum coke and calcined petroleum coke have been treated to be a part of one entry 'coke in all its forms'. The principle that different commercial commodities attract separate tax was distinguishable. In view of the judgment of the honourable Supreme Court 1994 in State of Bihar v. Universal Hydrocarbons Co. Ltd. [(8) TMI 248 - SUPREME COURT OF INDIA] in respect of same commodity, it is not necessary to go into the general principle whether different commercial commodities will attract separate tax as laid down in the judgment of the honourable Supreme Court in State of Tamil Nadu v. Pyare Lal Malhotra [1976 (1) TMI 151 - SUPREME COURT OF INDIA] which was held to be distinguishable in its applicability to the entry of 'coke in all its forms'.Set aside the impugned order and direct that a fresh decision be taken in the matter, Issues:Seeking direction for refund of excess amount paid to Sales Tax Department, Government of Assam.Analysis:The petitioners, registered dealers under Central Sales Tax Act, 1956 and Assam General Sales Tax Act, 1993, applied for a refund of tax paid on raw petroleum coke converted to calcined petroleum coke for inter-State trade. The Government of Assam rejected the refund application, stating that raw and calcined petroleum coke are distinct commodities due to irreversible chemical changes during the manufacturing process. The petitioners challenged this decision, citing the Supreme Court judgment in State of Bihar v. Universal Hydrocarbons Co. Ltd., which held that 'coke in all its forms' includes calcined petroleum coke under the same entry. The court referred to the interpretation of similar entries in other cases, emphasizing that different commercial commodities may fall under one tax category. The court set aside the order and directed a fresh decision within three months based on the Supreme Court's interpretation.Conclusion:The High Court of GAUHATI HIGH COURT addressed the issue of refunding excess tax paid by dealers on raw petroleum coke converted to calcined petroleum coke for inter-State trade. The court compared the distinction between raw and calcined petroleum coke, citing relevant Supreme Court judgments to support the inclusion of calcined petroleum coke under the entry 'coke in all its forms.' The court directed a fresh decision by the Government of Assam within three months, based on the Supreme Court's interpretation of the tax category.