TMI Blog2015 (11) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... similar. - Decided in favour of assessee. - Writ Petition (C) No. 1554 of 2015 - - - Dated:- 8-5-2015 - VAIPHEI T. AND SAIKIA P. K. JJ. Dr. A. Saraf, Senior Advocate, A. Goyal, P. Baruah, Z. Islam and P. Das for the petitioner. S. Chetia, Standing Counsel, Finance, for the respondents. JUDGMENT This writ petition has been filed challenging the Clarificatory Order No. CTS-91/2002/322 dated February 7, 2015, rendered by the Commissioner of Taxes, Assam holding that PDP Steel Ltd. (here-in-after referred to as the petitioner) shall not be entitled for exemption for payment of entry tax under section 3(2) of the Assam Entry Tax Act, 2008 (in short, the Act of 2008 ) since the imported hot rolled sheets in coil when processed to cold rolled sheets in coil form, it no longer remains the same specified goods as mentioned in entry at serial No. 50(iv) to the Schedule attached to the Act of 2008. We have heard Dr. A. Saraf, learned senior counsel, assisted by Mr. A. Goyal, Mr. P. Baruah, Mr. Z. Islam and Mr. P. Das, learned counsel for the petitioner. Also heard Mr. S. Chetia, learned Standing Counsel, Finance Department. The facts, necessary for disposal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industrial plant of the petitioner, same no longer remains a goods, so specified at Sl. No. 50(iv) of the Schedule attached to the Act of 2008. As such, exemption from entry tax under section 3(2) of the Act of 2008 cannot be claimed in respect of sale of such goods. The relevant part of the judgment is reproduced below: Now, the incidence of entry tax as contemplated by the Act arises on the entry of specified goods into any local area for consumption, use or sale therein. The goods hot rolled coil is specifically enumerated under the Schedule of the Act. There is also no dispute that the petitioner imports specified goods into local area of Assam. His claim of exemption from entry tax is based on the argument that here occurs no consumption or lose of hot rolled coil in his activity of processing hot rolled coil into cold rolled coil. The chemical properties of both hot rolled coil and cold rolled coil are the same. The only difference is in their thickness. Therefore, according to him, the specified goods, namely, hot rolled coil imported by him are not for any consumption or use but for sale. Further, it does not attract liability to pay entry tax in view of the exemption p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act of 2008. We have considered the rival submissions, having regard to the decisions relied on. Before we proceed further, we find it necessary to reproduce the provision of section 3 of the Act of 2008 as well as the entry at Sl. No. 50(iv) to the Schedule attached to the Act of 2003. The section 3 of the Act of 2008 is reproduced below: 3. Levy of tax.-(1) Subject to the other provisions of this Act, there shall be levied and collected on entry tax on the entry of specified goods into any local area for consumption, use of sale therein, at the rates respectively specified against each item in the Schedule. The entry tax shall be leviable on the import value of the specified goods and shall be paid by every importer of such goods: Provided that no entry tax shall be levied under this section on the entry of specified goods into a local area, if it is proved to the satisfaction of the assessing authority, in such manner as may be prescribed, that such goods have already been subjected to entry tax or that the entry tax has been paid by the importer or any other person under this Act in respect of the same goods. (2) Notwithstanding anything contained in sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceed twenty percentum. The Provisions of entry at Sl. No. 50(iv) is also reproduced below: (iv) Sheets, hoops, strips and skelp, both black and galvanized, hot and cold rolled plain and corrugated, in all qualities, in straight lengths and in coil form, as rolled and in riveted condition. A conjoint reading of the above provision of law reveals that no entry tax on entry of goods, specified in Schedule, attached to the Act of 2008, which are brought into any local area is to be paid provided such specified goods are resold inside the State as the same specified goods and provided tax is payable under the Act of 2003 on the sale of such specified goods. Coming back to our present case, it is found that hot rolled coil, imported into local area in the State of Assam and the same is sold after processing it to a product which is called as cold rolled coil. It is found that both the products aforesaid are sold in coil form. Entry at Sl. No. 50 to the Schedule aforesaid reveals that sheets, hoops, strips and skelp, both in hot rolled coil as well as cold rolled coil, are specified goods and as such, only for changing the hot rolled coil to cold rolled coil, later does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14(ia) of the Act. When the entry says 'coke in all its forms', there is no possibility of bringing coke of different forms except under this entry. The Joint Commissioner has clearly held that both raw petroleum coke and calcined petroleum coke, though different commercial commodities are 'declared goods'. However, he held that by process of manufacture, raw petroleum coke has lost its original identity and has resulted in a new product, namely, calcined petroleum coke. Therefore, according to him, the benefit under section 15(b) of the Act could be availed of only if the same goods are subject to inter-State levy of tax. He opined the use of words 'such goods' under section 15(b) of the Act is of significance. 18. We are totally unable to accept this line of reasoning. Once the entry is 'coke in all its forms' irrespective of the fact raw petroleum coke loses its original identity or in the process of manufacture calcined petroleum coke is produced, cannot take calcined petroleum coke out of the purview of this entry. In more or less identical situation, this court held in India Carbon Ltd. v. Superintendent of Taxes case [1971] 28 STC 603 (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... soon as the process of tanning is over and the danger of their putrefaction is put an end to. The entry in the CST Act, however, includes within its scope hides and skins until they are dressed . This, as we have seen, represents the stage when they undergo the process of finishing and assume a form in which they can be readily utilized for manufacture of various commercial articles. In this view, it is hardly material that coloured leather may be a form of leather or may even be said to represent a different commercial commodity. The statutory entry is comprehensive enough to include the products emerging from hides and skins until the process of dressing or finishing is done'. In our considered opinion, the decisions rendered in the cases, relied on by the petitioner, more particularly, the decision in Tata Tea Ltd. v. State of Assam [2015] 81 VST 442 (Gauhati) squarely cover the present case since facts and circumstances in both the cases are strikingly similar. Being so, we are of the opinion that clarification, rendered by the Commissioner of Taxes is unsustainable and the same is liable to be quashed and set aside which we accordingly do. Resultantly, this proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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