TaxTMI 
TaxTMI 
2002 (4) TMI 901
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....reign buyers in the name of Jute Corporation of India Ltd., at the instance of the petitioner due to canalisation of export of jute under the order of the Government of India. 3.. The petitioner received several notices from time to time under section 10 of the Act, 1962 into form IX prescribed under rule 13 of the West Bengal Taxes on Entry of Goods into Local Areas Rules, 1955 (hereinafter referred to "the Rules 1955"). The said notices were received on the ground that raw jute entered into local area during the period from 1st August, 1974 to 31st March, 1977 is liable to tax and penalty. 4.. The petitioner imported jute within the local area not for the purpose of sale, use or consumption. Therefore, under the Act, 1962 the authority has no power to levy tax on such goods. 5.. The entry of such goods within the local area is exempted under article 286(1)(b) of the Constitution of India and the State Government, therefore, has no power or jurisdiction to levy or impose tax on such goods. The notices issued by the Commercial Tax Officer, and tax levied therefore, are illegal and without jurisdiction. The order of penalty is also illegal and arbitrary. 6.. The petition....
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.... and object of the said Act. The Commercial Tax Officer is also not competent to make assessment under the law and to pass any order of penalty. Since rules framed under the Act, 1955 cannot be made applicable to the Act, 1962, relevant rules should have been framed under section 23 of the Act, 1962 before taking action. It is also argued that jute entered into the local area was not meant for local sale but actually for export outside the territory of India. The CTO has no authority even the sale, if any, was made in course of export in view of article 286 of the Constitution of India read with section 5 and section 14 of the Central Sales Tax Act, 1956. It is submitted that goods are exported by the Jute Corporation of India Ltd. and the petitioner is executing act of exporting after obtaining order of contract for such exports. Such contract, export licence, letter of credit are opened by the foreign buyers in the name of Jute Corporation of India Ltd., at the instance of the petitioner due to canalisation of export of goods under the order of the Government of India. Since after insertion sub-section (3) of section 5 of the Central Sales Tax Act, 1956, an attempt to levy any en....
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....n under article 226 without considering its merit, on the same cause of action, is maintainable under law, (b) if the assessment orders imposing levy of tax under the West Bengal Taxes on Entry of Goods into Local Areas Act, 1962 are bad in law. 11.. In view of the information slip No. 37470 dated April 3, 2002 filed on behalf of the petitioner issued by the concerned officer Central Filing and Enquiry Department, High Court, it appears that rule issued in C.R. No. 412(w) 1982 was discharged for default by the honourable Justice Suhas Chandra Sen on April 8, 1992. Therefore, the writ application filed under article 226 of the Constitution of India as it appears, was not heard on merits. The question therefore, arose as to whether such order of dismissal debars the petitioner in filing the present application under section 8 of the West Bengal Taxation Tribunal Act, 1987. In several cases, it has been held that a second petition under article 226 can be entertained if such petition was dismissed in limine without passing a speaking order or without making any pronouncement on merits (relied on AIR 1961 SC 1457 Daryao v. State of U.P. and AIR 1968 SC 985 P.D. Sharma v. Stat....
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.... consumption in its primary sense means the act of consuming and in ordinary parlance means the use of the article in a way which destroys, waste or uses up that article. But in some legal contexts the word consumption has a wider meaning. Thus when uncrushed salt is crushed in the factory, it is commercially a different article and the uncrushed salt must be held to have been consumed. It is therefore, not necessary that by the act of consumption, the commodity must be destroyed or used up (Kathiawar Industries Ltd. v. Jaffrabad Municipality AIR 1979 SC 1721 at page 1723). 17.. The legislative entry relating to the constitutional power to levy this tax is found in List II, entry 52 of the Seventh Schedule to the Constitution which reads: "52. Taxes on the entry of goods into a local area for consumption, use or sale therein." 18.. In a case of Burmah-Shell Oil Storage and Distributing Co. of India Ltd. v. Belgam Borough Municipality AIR 1963 SC 906 the honourable Court considered the meaning of the words "consumption, use or sale therein" and observed: "........The goods must be regarded as having been brought in for purposes of consumption when a person brings them ei....