1958 (8) TMI 43 - HC - VAT and Sales Tax

Summary

Issues:
Assessment order validity and inconsistency in findings regarding sales tax exemption for goods sold outside West Bengal but delivered in the state.

Analysis:
The petitioner, a manufacturer of coke and derivatives, was issued a notice by the Commercial Tax Officer under the Bengal Finance (Sales Tax) Act, 1941, for the year 1955-56. The petitioner submitted a revised return accompanied by a covering letter claiming exemption for sales made outside West Bengal but delivered within the state. The assessment order disallowed the exemption claim based on the goods being delivered in West Bengal, leading to an inconsistency in findings. The Court noted that if goods were sold outside the state but brought in by purchasers, they should not be liable for sales tax in West Bengal. The Commercial Tax Officer's reasoning for disallowing the exemption was based on the goods being delivered in West Bengal, which contradicted the initial acceptance of the petitioner's statement. The Court found the assessment order to be bad due to the inconsistency and ordered it to be set aside.

The Court directed the matter to be reconsidered by the Commercial Tax Officer under the "exemption" heading to determine whether the goods in question were liable for sales tax in West Bengal. The assessment order was to be remade in accordance with the law, focusing on clarifying whether the goods were delivered in or outside West Bengal to establish the eligibility for exemption. The Court did not challenge the correctness of the rest of the assessment order. The judgment concluded by setting aside the assessment order, quashing it via a writ of certiorari, and sending the matter back to the Commercial Tax Officer for a clear determination on the exemption eligibility based on the delivery location of the goods. No costs were awarded in the case.