2013 (7) TMI 745 - HC - VAT and Sales Tax

Registration fee on the import of coal - U.P. VAT Act - petitioner brings coal from the collieries of Coal India Limited as per sale policy of E-auction & also purchasing coal from the traders of Jharkhand, Bihar and Assam - Held that - There is no provision under the Indian Forest Act, 1927, and the Rules of 1978 for registration of any dealer. There is only a provision of registration of marks for issuance of foreign passes. The petitioner is not the importer of coal from outside the India nor exports the coal within the country to outside India. Thus the insistence for registration and for charging the registration fees is beyond the authority conferred upon the respondents under the Indian Forest Act, 1927 and the Rules of 1978. If any registration fee is charged from the petitioner, the same shall be returned to him. He will, however, continue to obtain transit passes and pay transit fee on the transportation/movement of coal, held to be forest produce in accordance with the U.P. Transit of Timber and other Forest Produce Rules, 1978.

Summary

Issues:
1. Requirement of registration fee for the import of coal under U.P. Value Added Tax Act, 2008.
2. Interpretation of Rules 20 and 21 of U.P. Transit of Timber and other Forest Produce Rules, 1978.
3. Applicability of Section 41 and Section 41A of the Indian Forest Act, 1927.
4. Necessity of registration for dealers importing forest produce in the State of UP.
5. Comparison with previous judgments on the movement of forest produce within the State of UP.

The judgment addressed the issue of the petitioner, a coal trading proprietorship concern registered under the U.P. Value Added Tax Act, 2008, seeking relief from the imposition of registration fees on coal imports. The respondents contended that as per Rules 20 and 21 of the U.P. Transit of Timber and other Forest Produce Rules, 1978, registration was required for forest produce imports. However, the court analyzed Section 41 and Section 41A of the Indian Forest Act, 1927, which delegate powers for timber property marks registration and import regulations, finding no provision for dealer registration in the State of UP.

The court highlighted that the Rules of 1978 mandated registration for property marks and foreign passes for timber imports, not for dealers importing forest produce. Referencing the NTPC Limited case, the court emphasized that registration was not necessary for the movement of forest produce within UP. The petitioner, not an importer or exporter of coal outside India, was deemed exempt from registration requirements under the Indian Forest Act and the Rules of 1978.

Consequently, the court ruled in favor of the petitioner, exempting them from mandatory registration for coal movement within UP and ordering the refund of any erroneously charged registration fees. The petitioner was directed to comply with transit pass requirements and pay applicable fees for coal transportation, as established in the U.P. Transit of Timber and other Forest Produce Rules, 1978, aligning with the precedent set in the NTPC Ltd. case regarding forest produce movement regulations within the state.