TMI Blog2006 (11) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... s, in turn, allot quota of wheat to various roller flour mills and other agencies in the State. After receiving necessary order of allotment, the petitioner-company, as an allottee under the State Government, purchases the allotted quota of wheat from the FCI. Upon purchasing wheat from the FCI, the petitioner-company produces wheat products, such as, atta, flour, sujee, bran, etc. By virtue of the release orders, dated January 23, 2002 and January 28, 2002, the petitioner-company purchased 4,000 quintals of wheat, at the fixed rate of Rs. 665, from the respondent No. 2, namely, the FCI, through the respondent No. 3, i.e., Manager, FCI, Bongaigaon, the entire transaction of payment for, and delivery of, goods having been completed between t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in this writ petition, the dispute is not, and I am not called upon to decide, as to whether entry tax is leviable on the wheat, which the FCI imports into the State of Assam. What is also required to be borne in mind is that the price for sale of wheat by the FCI to various allottees, in a State, is determined not by the FCI, but by the Union of India. The FCI cannot, therefore, charge, either as price or in the name of price, any amount exceeding what the Central Government fixes as the price of wheat to be sold by the FCI. In the case at hand, the demand for payment of entry tax at the rate of two per cent has been resisted by the petitioner on two grounds, namely, (i) that when the transaction of the sale of wheat by the FCI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... importer under this Act shall be charged on the purchase value of the goods specified in the Schedule at the rates as shown in the said Schedule: Provided that no such tax shall be payable on the entry of the goods which are meant for the exclusive use or consumption of the Defence Department of the Government of India: Provided further that no entry tax shall be levied on the entry of the goods into any local area for consumption or use therein which are the exclusive property of the Union Government: Provided also that no such tax shall be payable on the entry of such goods which are brought for the purpose of sale or use under the Assam Public Distribution of Articles Order, 1982: 'Provided further more that no tax shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withdraw any such exemption at any time, as it may think fit and proper. Section 2(e) defines local area to mean the area comprised within the limits of a local authority including any area which has been or may hereafter be included in the Municipal Corporation of Guwahati, constituted under the Guwahati Municipal Corporation Act, 1969 (Assam Act 1 of 1973) or in the Municipality or Town Committee constituted under the Assam Municipal Act, 1956 (Assam Act XV of 1957) or any area comprised within a Gaon Panchayat or an Anchalik Panchayat constituted under the Assam Panchayat Act of 1994 (Assam Act XVIII of 1994). Section 6, which embodies the principles governing entry tax, reads as follows: 6. Principles governing the levy of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax, which it pays, is a question, which is not required to be decided in the present case inasmuch as the price of wheat, which has been sold to the petitionercompany, is fixed by the Central Government and the price so fixed cannot be altered or changed by the FCI. Turning to the question as to whether the FCI can demand payment of entry tax as price value of the wheat from the petitioner-company, what may also be noted is that the transaction of sale in respect of the said 4,000 quintals of wheat, in the present case, was over on January 28, 2002. Having sold wheat at a particular value, no further sum of money can be added by the FCI to the selling price of the goods already sold. In a given case, a seller may include, within its sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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