Binding revisional orders and the commercial meaning of coal excluded cinder and cinder ash from exemption.

Subordinate sales tax authorities were required to follow a revisional order of the highest quasi-judicial authority under the Act so long as it remained operative and had not been set aside by a superior court, even if a writ challenge was pending. On the exemption issue, cinder and cinder ash were construed in their ordinary commercial sense and were not treated as coal, coke, or other derivatives. The resulting tax treatment at the general rate was therefore upheld, and the assessment sustained.

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Issues: (i) Whether the sales tax authorities were bound to follow the Financial Commissioner's earlier revisional order while the challenge to that order was still pending. (ii) Whether cinder and cinder ash fell within the expression "coal including coke and other derivatives" and were therefore exempt or otherwise not taxable at the general rate.

Issue (i): Whether the sales tax authorities were bound to follow the Financial Commissioner's earlier revisional order while the challenge to that order was still pending.

Analysis: The revisional authority under the Bengal Finance (Sales Tax) Act, 1941 functioned as the highest quasi-judicial authority under the relevant sales tax hierarchy. The decision made by that authority remained operative and final unless set aside or modified by a superior court. On principles of judicial comity, certainty, and uniformity in tax administration, subordinate authorities were bound to follow that decision and could not disregard it merely because a writ challenge was pending.

Conclusion: The point was decided against the assessee and in favour of the Revenue.

Issue (ii): Whether cinder and cinder ash fell within the expression "coal including coke and other derivatives" and were therefore exempt or otherwise not taxable at the general rate.

Analysis: The expression had to be understood in its ordinary commercial sense. The earlier authorities relied upon by the assessee did not support the inclusion of cinder or cinder ash within coal or coke or their derivatives. The decisions referred to in the order consistently treated cinder as distinct from coal, and the reasoning of the Financial Commissioner that coke, being a deliberate product of distillation, stood apart from residual forms such as cinder, khangar, and ash was accepted.

Conclusion: Cinder and cinder ash were held not to fall within the exempt category, and the assessment at the general rate was upheld.

Final Conclusion: The appeal failed, and the assessment order sustained by the authorities below was upheld.

Ratio Decidendi: A subordinate tax authority must follow the binding revisional decision of the highest quasi-judicial authority under the Act until it is set aside by a superior court, and cinder or cinder ash is not coal or coke in the ordinary commercial sense for exemption purposes.

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