2015 (11) TMI 713

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..... Z. Islam and Mr. P. Das, learned counsel for the petitioner. Also heard Mr. S. Chetia, learned Standing Counsel, Finance Department. The facts, necessary for disposal of the present writ petition, in short, are that the petitioner-company deals in the business of cold rolled sheets in coil form. In course of its business, the petitioner-company purchased hotrolled sheets in coil form and after its purchase, thickness of the same is reduced through some process in the industrial unit of the petitioner company and thereafter, such product is sold in the market which is called as cold rolled coil. At the time of purchase of the same by the company, such goods are billed as hot rolled coil while at the time of selling the same in the State of Assam after being processed in the industrial unit of the company, such goods is billed as cold rolled coil. According to the petitioner, hot rolled coil despite being processed to cold rolled coil does not cease to be a specified goods as mentioned in entry at serial No. 50(iv) to the Schedule attached to the Act of 2008. It has been contended that in terms of section 3(2) of the Act of 2008, no entry tax shall be payable on the goods,....

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....ied goods, namely, hot rolled coil imported by him are not for any consumption or use but for sale. Further, it does not attract liability to pay entry tax in view of the exemption provisions contained in section 3(2) (i) of the Act. To arrive at the correct conclusion, it would be necessary to make a close examination of the charging provisions as well as the exemption situation incorporated therein. Section 3(2)(i) reads as follows: 'if such specified goods are brought into any local area by a dealer registered under the Assam Value Added Tax Act, 2003 for the purpose of resale and such goods are sold inside the State and the dealer is liable to pay tax on the sales of such goods under the Assam Value Added Tax Act, 2003 (Assam Act VIII of 2005)' Further the exemption on this count is made available only subject to production of documentary proof. Therefore, it is crystal clear from the schemes of the Act itself that in order to claim exemption under section 3(2)(i), specified goods must have been imported for the purpose of resale. The Legislature has used the phrase: for the purpose of resale with a manifest intention and the same is that exemption from payment of entry....

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....n subjected to entry tax or that the entry tax has been paid by the importer or any other person under this Act in respect of the same goods. (2) Notwithstanding anything contained in sub-section (1), and subject to production of documentary proof, no entry tax shall be levied on such specified goods, which are also taxable under the Assam Value Added Tax Act, 2003,- (i) if such specified goods are brought into any local area by a dealer registered under the Assam Value Added Tax Act, 2003 for the purpose of resale and such goods are sold inside the State and the dealer is liable to pay tax on the sales of such goods under the Assam Value Added Tax Act, 2003; (ii) if such specified goods are sold in the course of inter-State trade or commerce or in the course of export out of the territory of India or such goods are otherwise dispatched outside the State by way of stock transfer by a dealer registered dealer under the Central Sales Tax Act, 1956; (iii) if such specified goods are imported into a local area in the course of import from outside the territory of India: Provided that, if any such dealer, after importing the specified goods, ....

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....form. Entry at Sl. No. 50 to the Schedule aforesaid reveals that sheets, hoops, strips and skelp, both in hot rolled coil as well as cold rolled coil, are specified goods and as such, only for changing the hot rolled coil to cold rolled coil, later does not cease to be the specified goods as mentioned in aforesaid entry and as such, the benefit under section 3(2) of the Act of 2008 needs to be extended to the petitioner provided VAT is also payable in respect of sale of such goods. Above conclusion of us finds support from the decisions of this court in the case Tata Tea Ltd. v. State of Assam [2015] 81 VST 442 (Gauhati). In Tata Tea [2015] 81 VST 442 (Gauhati), the petitioner therein imported tea from outside and blended the same with some local varieties and thereafter sold the same in packed condition inside the State and outside the State in course of inter-State trade and commerce. The petitioner sought an opinion from the Commissioner regarding applicability of the entry tax to the above goods. The Commissioner has rendered his opinion holding that after being blended with many other local varieties, the imported tea no longer remains as tea as specified in entry at ser....

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.... identity or in the process of manufacture calcined petroleum coke is produced, cannot take calcined petroleum coke out of the purview of this entry. In more or less identical situation, this court held in India Carbon Ltd. v. Superintendent of Taxes case [1971] 28 STC 603 (SC) that petroleum coke is one form of coal governed by the expression 'coal' within section 14(ia). The relevant extract of the judgment is as under: (SCC, page 624, para 15) 'It is not disputed that if petroleum coke is covered by clause (i) of section 14 which reads "coal including coke in all its forms" the State was not competent to levy tax at a rate exceeding the one given in section 15(a) of the Central Act. The High Court was of the view that the word "coal" includes coke in all its forms in clause (i) of section 14 of the Central Act and must be taken to mean coke derived from coal. In other words it must be coke which had been derived or acquired from coal by following the usual process of heating or burning. The contention, therefore, of the appellant was negatived that petroleum coke was covered by the aforesaid provision of the Central Act.' 19. This decis....