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TMI Blog1976 (9) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of cinder and cinder-ash. Following the decision of the learned Financial Commissioner, Delhi dt. 5th Aug., 1971 in Revisions NO. 59 to 52 of 1971 given under s. 20(3) of the Act aforesaid, the assessing authority levied sales tax on the entire taxable turnover in respect of cinder at the rate of 5 per cent. 2. The contention of the dealer Sohan Lal Bansiwal is that cinder was an exempt item under the second Schedule of the Act aforesaid and, therefore, at any rate it could not be taxed at 5 per cent. It was also urged that cinder or cinder ash is one of the forms of coal and coke and as coal is taxable at the first point, the subsequent sale thereof is exempt from tax. In Revisions No. 49 to 52 of 1971 filed by this very dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority did only the right thing in following that decision. It would result into uncertainly and confusion and nobody would know what the correct law at any rate at the Tribunal's state was if the Sales-Tax Authorities proceeded to by pass the decision of the Financial Commissioner on points of law and they gave their own interpretation on any point of law. 3. This was the view taken in the case of Economic Traders vs. The State of Maharashtra, Selected Decisions of the Maharashtra Sales Tax Tribunal (1969) Vol. 20 Part I page 267. In that case it was held that the decision of the Tribunal operated as a precedent from the date the Tribunal gave that decision and would continue to be so until the High Court took a contrary view or until the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a particular case and also unduly restrict the proper development of the law. They propose therefore to modify their present practice and while treating former decisions of this House as normally binding, to depart from a previous decision when it appears right to do." "In this connection they will bear in mind the danger of disturbing retrospectively the basis on which contracts, settlements of property and fiscal arrangements have been entered into and also the especial need for certainly as to the criminal law": The House of Lords declared :-- "This announcement is not intended to affect the use of precedent elsewhere that in this House." 5. Thus the rule is that a Court is bound by the decisions of all Courts higher than itself. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Commissioner Shri Mahabir Singh in his order dt. 5th Aug., 1971 had categorically held that coke, a derivative of coal is basically different from cinder, Khangar and ash for whereas all the four are residues of coal, coke falls within the term 'derivatives' as it is obtained through an intentional and controlled process of distillation whereas the other three residues are not so obtained-intentionally or deliberately and thus remain plain and simile residue. Accordingly the learned Financial Commissioner concluded that : cinder, Khangar and ash as sold by the dealer firm do not fall within the meaning of the term "coal including coke and other derivatives" and the same could be liable to the imposition of sales tax at the general rate. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion petition before the Financial Commissioner, it was conceded by Shri Bhagwati Preshad, Advocate for the assessee that there was not a single judicial pronouncement which may favour the dealer's case to cinder, Khanger and ash being included in the term coal or being a dervative of coal, the learned counsel in the present appeal placed reliance on the following cases :-- (i) Commissioner of Sales Tax, M.P. vs. Jaswant Singh Charan Singh (1967 19 STC 469 (SC) (ii) India Carbon Ltd. vs. Superintendent of Taxes, Gauhati (1971 28 STC 603 (SC) (iii) Binod Mills Co. Ltd., M.P. vs. Commissioner of Sales Tax (1972 29 STC 413 (MP) (iv) Sabaramati Reti Udyog vs. Commissioner of Sales Tax, Gujarat State (1972 29 STC 418 (Guj). 14. We may take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Sales Tax, reference was made to the High Court. 18. Relying on the decision in the Sales Tax Commissioner, Indore vs. Jaswant Singh Charan Singh (1967 19 STC 469), the Madhya Pradesh High Court held that "coal including coke in all its forms" under entry No. 1 of Part III of Sch. II included coal ash. It is to be noted that no-one appeared before the M.P. High Court to oppose the reference and the High Court observed that it was accepted before that coal ash was commercially called cinder, a commodity which was expressly included in the dictionary meaning of coal. This decision was followed in Binod Mills Co. Ltd., without any further discussion. We have already noted that the Supreme Court in the case of Jaswant Singh Charan Singh h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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