Indian Oil Corporation Ltd Vs State of Assam And 3 Ors. (Gauhati High Court)
Gauhati High Court held that once the assessment order of the authorities are set aside and matter is remanded back and on assessment, no taxable due was found, no interest can be levied.
Facts- The petitioner Indian Oil Corporation has been purchasing various petroleum products from BRPL on payment of Sales Tax as per provisions of the Act, 1993.
The Union of India at the relevant point of time, constituted Oil Prices Committee and said committee recommended that the dealers are to sale its products at the prices fixed by the Central Government and prices so fixed by the Central Government included surcharge to be collected from buyers and to be deposited to the “Oil Pool account”. Such recommendation was adopted by the Union of India on 16.12.1977.
The Superintendent of Taxes took a view that since the sale price of the petitioner company is more than 40% of the purchase price, the second sale was to be treated as first sale and therefore, the Company was liable to pay tax on the second sale considering it to be first sale in the State of Assam. Such view was based on the explanation to section 8(1)(a) of the Act, 1993 read with Rule 12 of the Assam General Sales Tax Rule, 1993.
