2010 (12) TMI 1330 - HC - VAT and Sales Tax

Summary

Issues involved:
The issue involved in this case relates to the eligibility of Hans Chap Khaini, a Chewing Tobacco, for tax exemption as per a Government Notification. The Assessing Authority denied the exemption, leading to a detention order challenged in the proceedings.

Details of the Judgment:

Issue 1: Eligibility for Tax Exemption
The petitioner claimed tax exemption for Chewing Tobacco based on a government order dated 12.10.2009. The Joint Commissioner's order supported the exemption, citing a Supreme Court judgment regarding similar products. The petitioner argued that the Joint Commissioner's order is binding on the Assessing Authority.

Issue 2: Validity of Joint Commissioner's Order
The Additional Government Pleader contended that the Joint Commissioner's decision exceeded legal limits and cannot extend the exemption to Hans Chap Khaini Chewing Tobacco. The Department planned to appeal the order. It was argued that the Joint Commissioner's decision is not binding on the Assessing Authority under Article 226 of the Constitution of India.

Issue 3: Binding Nature of Superior Authority's Order
While acknowledging the general binding nature of superior authority's orders, the Court noted that the petitioner challenged the detention order before the Court. The Court emphasized that it must decide on the petitioner's case, despite the distinction between the Joint Commissioner's order and the Supreme Court judgment. The Court directed the release of detained goods upon the petitioner paying 50% of the demanded amount, pending final adjudication by the respondents.

In conclusion, the Court disposed of the writ petition with directions to release the detained goods, subject to the petitioner's payment and final adjudication.