2017 (10) TMI 884

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....osing tax on the petitioner under the VAT Act by treating the price of coal to be of Rs. 7000/- per Metric Ton instead of assessing the tax based on the actual sale price and the price of coal indicated in the Sale order @ Rs. 1740/- per M.T., this petition has been filed. Fact in brief which are relevant for deciding the issue in question goes to show that the petitioner is engaged in manufacture of soft coke/ special smokeless fuel from coal and for the said purpose is allowed linkage for assured supply by the Coal India Limited. As per the distribution policy of Coal India the petitioner entered into a Fuel Supply Agreement with the Central Coalfields Limited for supply of coal and the Central Coalfields Limited used to supply coal from....

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....on the aforesaid price of coal paid the tax, then merely on the basis of an assumed minimum price indicated in the circular the impugned action is not sustainable. In support of the aforesaid contention, learned counsel invited our attention to the judgment of this Court in the case of M/s Nazir Saw Mill vs. State of Bihar CWJC No. 2223 of 2014 decided on 07.05.2014, wherein the petitioner, a timber merchant, used to procure sawn timbers from outside the State of Bihar at a particular price but was imposed tax under the Bihar VAT Act at a price fixed by the Commercial Tax Department as has been done in the present case, wherein this Court questioned similar act of the Department. Learned counsel argues that in this case once from the sale o....

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....13 has been sought for as the same has not been issued in exercise of any statutory power for the purpose of levy and imposition of tax or penalty. "5. That the answering respondents humbly state and submits that certain commodities(i.e. altogether Nine Items) were identified as tax evasion prove commodities and normally traders in unorganized section show all these goods/items at under valued rate with a intention to tax evasion. "6. That it is further humbly stated that as a regulatory measure an appropriate minimum price have been determined with respect to the said identified nine commodities, and by letter No. 2580(Anu) dated 18.7.2013 M/s Tata Consultancy Service was directed to indicate minimum quoted rate of all identified nine....

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....rate claimed by the assessee is established then the price or rate claimed by the assessee can be accepted for imposition of duty/tax. In this case, if we go through the assessment order in question we find that merely because the price quoted in the invoice and the document produced by the assessee were lesser than the minimum price fixed in the circular the amount of excess tax was imposed. On the contrary, it is not the case of the department that the petitioner did not produce any cogent evidence or material, on the contrary, available on record are the sale documents Annexure-4 series which shows that the sale order, the invoice, Form- J submitted to the Govt. of Jharkhand and ongoing documents filed as Annexure-2 series indicating the....