1960 (8) TMI 68 - SC - VAT and Sales Tax

Company challenges the authority of the Commercial Tax Officer, Lyons Range, Calcutta, to demand payment of ₹ 41,14,718-12 nP. to the West Bengal Government as tax leviable under the Central Sales Tax Act, No. 74 of 1956, in respect of certain sales of steel goods

Held that:- The Commercial Tax Officer had, in our judgment, to ascertain before he could order payment of tax under the Central Sales Tax Act, whether on the materials he was satisfied, (a) that the goods at the time of transfer of documents of title were in movement from the State of Bihar to the State of West Bengal, (b) that the place where the sale was effected was under section 4, clause (2), within the State of West Bengal. The Commercial Tax Officer has, in our view, failed to apply the correct tests and has made assumptions which are not warranted and on a true interpretation of the provisions of the Central Sales Tax Act, the order of assessment discloses an error apparent on its face and a writ of certiorari must issue quashing the assessment. It will be for the Commercial Tax Officer of West Bengal to reassess the company in respect of transactions of sale which are properly taxable within the State of West Bengal by the application of the tests which we have already set out.

On this view, the rule is made absolute and it is directed that a writ of certiorari will issue quashing the order of assessment made by the Commercial Tax Officer, Lyons Range, Calcutta, West Bengal. Appeal allowed.