9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1971 (1) TMI 96 - SC - VAT and Sales TaxWhether in the facts and circumstances of the case, the respondents were entitled to the exemption claimed by them? Held that - Appeal dismissed. The questions in dispute were whether there was a sale, and if so, whether the sale was exempt from liability to pay tax. Without deciding whether there was a sale by the respondent to the Government of India or to the Government of Pakistan, it is sufficient for the purpose of this case to observe that the sale if any was by virtue of section 5(2)(a)(v) exempt from liability to sales tax under the Bengal Finance (Sales Tax) Act, for it was a sale in the course of export. No argument was advanced before us which would justify us in taking a different view.
Issues:
1. Competency of High Court to entertain writ petition without exhausting statutory remedies under Bengal Finance (Sales Tax) Act. 2. Existence of a contract of sale between respondent and Pakistan Government. 3. Exemption from liability to pay sales tax under section 5(2)(a)(v) of Bengal Finance (Sales Tax) Act. Competency of High Court to entertain writ petition without exhausting statutory remedies under Bengal Finance (Sales Tax) Act: The High Court entertained a writ petition challenging the levy of sales tax without the respondent exhausting the statutory remedies available under the Bengal Finance (Sales Tax) Act. The State contended that the High Court lacked jurisdiction due to the failure to invoke the revisional jurisdiction of the Board of Revenue before approaching the High Court. The Court clarified that while it is a general practice for aggrieved parties to exhaust statutory remedies before seeking relief under Article 226, it is not a jurisdictional requirement. The High Court can intervene in appropriate cases, especially when the facts are undisputed, and the issue revolves around the entitlement to an exemption. The Court held that the High Court properly exercised its jurisdiction in this case, dismissing the State's contention. Existence of a contract of sale between respondent and Pakistan Government: The main argument raised was regarding the existence of a contract of sale between the respondent and the Pakistan Government. The State contended that the contract was between the respondent and the Government of India, not Pakistan, thus challenging the exemption claimed by the respondent. The Court found this argument difficult to appreciate, emphasizing that the crucial issue was whether the sale, if any, was exempt from sales tax liability under section 5(2)(a)(v) of the Bengal Finance (Sales Tax) Act. The Court did not delve into determining the specific parties involved in the contract but concluded that if there was a sale, it was exempt from tax as it was a sale in the course of export. Exemption from liability to pay sales tax under section 5(2)(a)(v) of Bengal Finance (Sales Tax) Act: The respondent, a colliery company, supplied coal to the Government of Pakistan under an agreement between the Governments of India and Pakistan. The respondent claimed exemption from sales tax under section 5(2)(a)(v) of the Act, which exempts sales in the course of export from tax liability. The tax authorities of West Bengal levied sales tax on this transaction, which led to the legal challenge. The High Court allowed the claim for exemption, and the State of West Bengal appealed against this decision. The Supreme Court upheld the High Court's decision, stating that the sale, if any, was exempt from sales tax under the Act as it was a sale in the course of export. The Court dismissed the appeal, noting the absence of any argument to warrant a different conclusion. In conclusion, the Supreme Court affirmed the High Court's decision, emphasizing the exemption from sales tax under section 5(2)(a)(v) of the Bengal Finance (Sales Tax) Act for sales in the course of export. The judgment clarified the competency of the High Court to entertain writ petitions without exhausting statutory remedies and the significance of the exemption provision in determining tax liability for export transactions.
|
