9911796707
TMI Blog2003 (1) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... from simple petroleum fuel to sophisticated petroleum products. The petitioner is a registered dealer under the Assam (Sales of Petroleum and Petroleum Products including Motor Spirits and Lubricants) Taxation Act, 1955 and Central Sales Tax Act, 1956. The petitionercompany has been served with the impugned notices dated June 21, 1994 and June 22, 1994 issued by the Senior Superintendent of Taxes, Bongaigaon, directing them to show cause as to why the amount of Rs. 39,88,32,905 received during the financial year 1985-86 from the oil pool account shall not be assessed as taxable turnover. The petitioner-company has assailed the aforesaid notices in this petition. 3.. I have heard Dr. A.K. Saraf, learned Senior Counsel for the petitioner an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to variation in the pattern of production standard. Surplus realisation, if any, on account of such variation is adjusted against costs and freights. It is further submitted that taxation of subsidy/ compensation is beyond the legislative power of the State and levy of such taxation on subsidy will amount to violation of the Constitutional protections under article 19(1)(g) and article 21. 5.. I have heard Dr. A.K. Saraf, learned Senior Counsel for the petitioner and Mr. B.J. Talukdar, learned State Counsel. 6.. Dr. Saraf argued that the sale price would mean the money received as consideration for sale of the goods from the buyers. The petitioner having charged ex-refinery prices for the product sold, it is only such prices received on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts at the ex-refinery prices as fixed by the Oil Coordination Committee with assurance of protection of the shortfall between the ex-refinery prices and the retention prices. However, as and when the retention price is less than the ex-refinery price, in that event the difference between the retention price and the sale price has to be surrendered to the oil pool account. On this context, it has to be considered whether the amount received by the petitioner-refinery as subsidy/compensation could be said to be a part of sale price. 8.. A division Bench of this Court had the occasion to deal with the matter in Commissioner of Taxes v. Bongaigaon Refinery Petrochemicals Ltd. [1999] 114 STC 26. It would be appropriate to quote herein the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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