N.P. Trading Company Vs Deputy Secretary (Calcutta High Court)
Calcutta High Court held that petitioner is entitled to concessional rate of tax at the rate of 2% on inter-State sale even if petitioner was unable to obtain Form-C declaration. Thus, writ disposed of accordingly.
Facts- The writ petitioner is the selling dealer having entered into a transaction with the 7th respondent for sale of Tendu Leaves. The sale is admittedly an inter-State sale as the commodity was sold from Chhattisgarh State. This aspect of the matter has not been disputed by the department at any point of time.
Apart from the transaction which the writ petitioner had with the 7th respondent, the writ petitioner had other inter-State sale transactions with other entities and in respect of those transactions the writ petitioner was able to obtain Form-C declaration from the purchasing dealer and, therefore, the transactions were charged at the concessional rate of duty at 2% instead of 5%.
However, in respect of the transaction done with the 7th respondent, the writ petitioner was unable to obtain Form-C declaration, as a result of which, the writ petitioner’s assessing officer did not extend the benefit of concessional rate of tax at 2% and was compelled to tax the writ petitioner at the rate of 5%. The challenge to such assessment was unsuccessful twice before the Revisional Authority.
