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TMI Blog2013 (6) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... or any realization of assessed amount of tax in pursuance of the aforesaid orders dated 29.9.2007. Writ petition No. 1683 296 of 2008 has been filed by M/s Vinayak Fibers Ltd. and M/s Urvasi Synthetic Processors Pvt. Ltd., through its Director Shri V.N.Gupta seeking a writ, order or direction in the nature of mandamus commanding the Deputy Commissioner (Assessment)-II, Commercial Tax Orai, District Jalaun, respondent no.4 to issue the requisite form of declaration of import (Form 38) to the petitioners. Writ petition No. 1437 of 2008 has been filed by M/s Super Fine Processors Pvt. Ltd. through its Director Shri Surendra Lal Wassan seeking a writ, order or direction in the nature of certiorari quashing the orders dated 31.3.2008 passed by the Assistant Commissioner, Trade Tax/Commercial Tax, Sector-2, Noida, district Gautam Budh Nagar, respondent no.3 under section 9(2) of the Central Sales tax Act, 1956 read with section 21of the U.P. Trade Tax Act (hereinafter referred to as the U.P. Act) for the assessment year 2002-03 filed as Annexure 8 to the writ petition and a writ order or direction in the nature of mandamus commanding the respondent no.3 not to proceed against the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been exempted form tax from 1957 as the textile manufacturers are paying additional excise duty in lieu of trade tax. The petitioner was not paying any tax on the process employed by it, i.e. colouring, printing, bleaching, washing and dyeing of the gray cloth. However, the Commissioner of Trade tax issued a circular dated 26.12.202 directing that the activities of processing, colouring, dyeing industries are involved in the execution of work contract and therefore, they are liable to pay tax. As the assessing authorities in the State of Uttar Pradesh were insisting upon payment of tax, the petitioner through its Association, namely, Northern India Textile Processors Association, made a representation to the Principal Secretary, Insitutional Finance, Government of Uttar Pradesh. On the said representation the Law Department, Government of U.P. sought a clarification vide letter dated 21.6.2004 as to whether the petitioner is paying the additional excise duty and whether the State Government is getting its share from the Central Government. Various meetings took place between the members of the petitioner Association and the State Government. The Commissioner, Trade Tax, U.P. h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the process of colouring and dyeing are consumed. It is transferred to the gray cloth and the decision taken by the State Government was on the representation made by M/s Ganga Processors Pvt. Ltd. pursuance of the order passed by this Court in Writ Petition Nos. 1244 of 2005 and 1245 of 2005 and not by the Northern India Textile Processors Association. A stand has been taken that against the impugned orders the petitioner has remedy to file appeal and, therefore, the writ petition be dismissed. Coming to the preliminary objection raised by the respondents regarding availability of alternative remedy of appeal we may mention here that this Court while entertaining the writ petition has considered this question. The order dated 06.12.2007 passed by a Division Bench of this Court is reproduced below: "In view of Annexure-6 to this writ petition, the learned standing counsel may file a counter affidavit within one month. List thereafter. Apparently, no disputed questions of fact are involved and only a pure question of law arises on admitted facts. In such circumstances. We decline to relegate the petitioner to the alternative remedy of appeal, because that would be only postponin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the parties. In the case of M/s Kichha Sugar Company Ltd., (supra) a learned single Judge of this Court had held that Government letters/circulars issued by the Commissioner of Sales Tax are binding on authorities administering the Act. In the case of Paper products Ltd. (supra) the Hon'ble Supreme Court has considered the circular issued by the Central Board of Customs and Excise and has held it to be binding upon the department and the department is precluded from challenging the correctness of the said circular even on the ground of same being inconsistent with the statutory provision and so far as the department is concerned, whatever action it has to take, the same will have to be consistent with the circular which is in force ad the relevant point of time. In the case of M/s Indra Industries (supra) the Hon'ble Supreme Court has held that circular issued by the Commissioner of Sales Tax under the A.P. General Sales Tax Act, even if erroneous is binding upon the tax authorities. In the case of Raghunatyh Laxminarain Spices Pvt. Ltd. (supra) a Division Bench of this Court has held that circular issued by the Commissioner is binding on the authorities and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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