TMI Blog2015 (6) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... llected by the petitioner from its dealers being in excess of the 40 per cent of the purchase price the question of levy of tax does not arise, since one of the requisite conditions viz. “the sale of a substantial part of the goods manufactured” is not fulfilled. Unless both the conditions are fulfilled the question of levy does not arise. In that view of the matter the view taken by the Assam Board of Revenue in review is untenable. - Decided in favour of assessee. - WP (C) 432/2008, 433/2008 and 436/2008. - - - Dated:- 11-3-2015 - Hon ble The Chief Justice (Acting) And Hon ble Mr Justice P. K. Saikia,JJ. For the Petitioner : Sri AK Saraf For the Respondents : Sri S Saikia JUDGMENT Heard the petitioner and the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... civil appeal. In view of the ratio laid down in the said decision the decision rendered by the Assam Board of Revenue was contrary to the law laid down by the Supreme Court, hence an application for review was filed. Accordingly the Assam Board of Revenue allowed the review petition and held that the sale effected by the petitioner to its dealers amounts to a first sale, since the sale price collected by the petitioner from its dealers is above 40 per cent of the sale price paid by the petitioner to the IOC, aggrieved by which this petition was filed by the Hindustan Petroleum Corporation Ltd, the petitioner. 7) At the outset it is to be noted that section 7 of the Assam Board of Revenue Act, 1962 invests the power of review in the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the entire sale amount. 9) On close scrutiny of the said decision it discloses that the ratio laid down in the said decision does not appear to have any bearing on the question and issue involved in this petition. 10) In order to appreciate the facts and issue involved in this case it is necessary to advert to the provisions of section 8(1)(explanation 1) of the Assam General Sales Tax Act, 1993, which read as follows. 8. (1) The tax leviable under section 7 for any year shall be charged on the taxable turnover during such year (a) in respect of goods specified in Schedule II at the first point of sale within the State, at the rate or rates specified in that Schedule. [Explanation 1] : Where a person sells a substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the purchase price. In this regard the counsel referred to the assessment order to show that the IOC had sold only 4.5 per cent of its total manufactured product to the petitioner. Therefore the quantity sold does not qualify the requisite condition selling a substantial part of the goods manufactured , only a marginal portion is sold, therefore the first condition not being fulfilled the question of levy of tax does not arise. 13) Sri Saikia, the counsel for the department, par contra, has strenuously submitted that the proposition a substantial part of the goods in the explanation 1 would be with reference to the price collected and not the quantity of goods only. In that view if the purchase price forms substantial portion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured . When that condition does not apply despite the fact that the sale price collected by the petitioner from its dealers being in excess of the 40 per cent of the purchase price the question of levy of tax does not arise, since one of the requisite conditions viz. the sale of a substantial part of the goods manufactured is not fulfilled. Unless both the conditions are fulfilled the question of levy does not arise. In that view of the matter the view taken by the Assam Board of Revenue in review is untenable. That apart as stated(supra) the question and issue involved in civil appeal 6619/2001 was totally different and has no nexus with the question and issue involved in the instant case. In that view of the matter the argument ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
