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of <h1>Court orders reimbursement of State Sales Tax paid on coal purchase under Central Sales Tax Act</h1> <h3>M/s. Akash Coke Industries Pvt. Ltd. Versus State of Jharkhand, Joint Commissioner of Commercial Taxes (Administration), Deputy Commissioner of Commercial Taxes, Assistant Commissioner of Commercial Taxes, Dhanbad</h3> M/s. Akash Coke Industries Pvt. Ltd. Versus State of Jharkhand, Joint Commissioner of Commercial Taxes (Administration), Deputy Commissioner of Commercial ... Issues:Reimbursement of excess tax paid under Section 15 of the Central Sales Tax Act for intraState sale of coal and interState sale of coke.Analysis:The petitioner sought reimbursement of excess tax paid under the Central Sales Tax Act for the intraState sale of coal and interState sale of coke. The petitioner purchased coal from Jharkhand, paying State Sales Tax amounting to Rs. 17,89,412.38, which was later converted into coke and sold outside the state, attracting Central Sales Tax of Rs. 63,80,572.73. The petitioner argued that as per Section 15(b) of the CST Act, the tax paid on coal should have been reimbursed when the end product, coke, was sold as an interState sale. The respondents contended that the refund application was improper as it lacked the excess demand notice required by the Bihar Sales Tax Rules.The court examined the facts and found that the petitioner had indeed paid State Sales Tax on coal and Central Sales Tax on the sale of coke. Referring to Section 15(b) of the CST Act, the court concluded that the petitioner was entitled to reimbursement of the State Sales Tax paid on coal. The court noted that the refund application was in compliance with Form XXIII and Rule 35 of the Bihar Sales Tax Rules, 1983. Despite the respondent's argument regarding the absence of the excess demand notice, the court held that the petitioner should be reimbursed the State Sales Tax amount of Rs. 17,89,412 without the need for the excess demand notice.Therefore, the court directed the respondents to reimburse the State Sales Tax paid by the petitioner for the purchase of coal, amounting to Rs. 17,89,412, along with statutory interest within eight weeks. Consequently, the writ petition was allowed and disposed of, along with the related interim application.
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