9911796707
TMI Blog2017 (10) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... he circular then an enquiry is conducted and if authenticity of rate claimed by the assessee is established then the price or rate claimed by the assessee can be accepted for imposition of duty/tax - In this case, if we go through the assessment order in question we find that merely because the price quoted in the invoice and the document produced by the assessee were lesser than the minimum price fixed in the circular the amount of excess tax was imposed. When the evidence as is available on record shows that the coal is purchased @ 1740 per M.T. merely because of a circular issued by the State of Bihar fixing the minimum price of certain commodity, which is not the foundation price or the price of the commodities but is only a price in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w that the petitioner is engaged in manufacture of soft coke/ special smokeless fuel from coal and for the said purpose is allowed linkage for assured supply by the Coal India Limited. As per the distribution policy of Coal India the petitioner entered into a Fuel Supply Agreement with the Central Coalfields Limited for supply of coal and the Central Coalfields Limited used to supply coal from various units and the petitioner used to transport the same to its establishment at Aurangabad. Vide sale order Annexure-2 dated 21.11.2013 the petitioner had purchased 627 M.T. of coal @ ₹ 1740/- per M.T. total price was fixed at ₹ 13,85,757/-. The petitioner was supplied the coal from Dhori area of Central Coalfields Limited situated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2223 of 2014 decided on 07.05.2014, wherein the petitioner, a timber merchant, used to procure sawn timbers from outside the State of Bihar at a particular price but was imposed tax under the Bihar VAT Act at a price fixed by the Commercial Tax Department as has been done in the present case, wherein this Court questioned similar act of the Department. Learned counsel argues that in this case once from the sale order and other documents placed on record price of the commodity, i.e. coal is shown as ₹ 1740/- per M.T. the impugned action taken for recovery of tax on the basis of an assumed price fixed under a circular of the department is unsustainable and the prayer is made to quash the same. Learned counsel for the respondents refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly traders in unorganized section show all these goods/items at under valued rate with a intention to tax evasion. 6. That it is further humbly stated that as a regulatory measure an appropriate minimum price have been determined with respect to the said identified nine commodities, and by letter No. 2580(Anu) dated 18.7.2013 M/s Tata Consultancy Service was directed to indicate minimum quoted rate of all identified nine items in the software and also make provision in Suvidha Software, so that if any Suvidha generated at Under valued rate, then at the time of its generation the system Display show Alert to the user that goods rate is under valued, please quote proper Price . Otherwise this vehicle will go for its physical verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than the minimum price fixed in the circular the amount of excess tax was imposed. On the contrary, it is not the case of the department that the petitioner did not produce any cogent evidence or material, on the contrary, available on record are the sale documents Annexure-4 series which shows that the sale order, the invoice, Form- J submitted to the Govt. of Jharkhand and ongoing documents filed as Annexure-2 series indicating the price of coal at ₹ 1740/- per Metric Ton and on this price tax was assessed by the State of Jharkhand. If these documents are perused it would be seen that these documents pertain to sale of 627 M.T. of coal by the Central Coalfields Limited, Purnea Range and the price for sale was ₹ 1740/- per M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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