1978 (8) TMI 190 - HC - VAT and Sales Tax

Summary

Issues involved:
The issues involved in this case are the validity of Notification No. FTX. 98/62/84, the levy of sales tax on imported onions, and the alleged discrimination in taxation between onions produced in Assam and those imported from outside the state.

Validity of Notification No. FTX. 98/62/84:
The petitioner sought the cancellation of Notification No. FTX. 98/62/84 and refund of sales tax paid on imported onions. The petitioner contended that onions should not be subjected to sales tax as they are not manufactured, made, or processed within Assam. However, the court noted that the schedule had been amended to include onions under the category of bulbs, making them taxable under the law.

Levy of sales tax on imported onions:
The petitioner argued that the levy of sales tax on imported onions was discriminatory as onions produced in Assam were also taxable. The State asserted that both imported and locally produced onions were subject to sales tax. The court examined the definition of "dealer" under the Assam Sales Tax Act and concluded that the levy of sales tax on imported onions was justified under the law, rejecting the petitioner's argument of discrimination.

Alleged discrimination in taxation:
The petitioner contended that the taxation of imported onions while exempting locally produced onions amounted to discrimination. The court, however, held that both imported and locally produced onions were taxable under the law, and the argument of discrimination was deemed unsustainable. The court concluded that the levy of sales tax on imported onions was valid, and there was no basis for ordering a refund of the tax already paid by the petitioner.

In conclusion, the High Court of Gauhati upheld the validity of the sales tax levy on imported onions, dismissing the petition and leaving the parties to bear their own costs.