1958 (3) TMI 54 - HC - VAT and Sales Tax

Summary

Issues:
1. Exemption claimed under section 5(2)(a)(v) of the Bengal Finance (Sales Tax) Act, 1941 for sales to addressees outside Bengal.
2. Exemption claimed for sales made outside the territory of India in the course of export.

Analysis:
1. The petitioner, a coke manufacturer, claimed exemptions under section 5(2)(a)(v) of the Act for sales to addressees outside Bengal. The Commercial Tax Officer disallowed part of the claim as the delivery was made within West Bengal. The petitioner argued that the coal was delivered to B.N. Railway at Bhowra, outside West Bengal, and not concerned with the final destination. The Court noted conflicting claims and found that the goods were dispatched to places within West Bengal, not outside, as evidenced by records. The Court declined interference due to factual findings against the petitioner and lack of appeal against the assessment, citing the Supreme Court ruling on certiorari.
2. The petitioner also sought exemption for sales outside India in the course of export. The Commercial Tax Officer rejected the claim, stating the goods were delivered to a shipping agent, not by the petitioner directly. The Court highlighted the complexity of export sales, requiring a series of integrated activities. It found inadequacy in the officer's reasoning, as it did not consider crucial factors like ownership transfer and government directives under the Colliery Control Order, 1945. The Court ordered a re-investigation, emphasizing the need for a thorough assessment based on all relevant aspects to determine if the sales qualified as exports.

Outcome:
The High Court ruled to quash the assessment order, directing the matter back to the Commercial Tax Officer for a comprehensive re-evaluation. The Officer was instructed to investigate whether the sales were made in the course of export, considering all relevant factors, and to make a new assessment order accordingly. The Court granted the petitioner the opportunity to present evidence on both exemption grounds but left it to the Officer's discretion. No costs were awarded, and the original assessment order was set aside.