CARBON RESOURCES PVT LTD v. THE STATE OF ASSAM AND 3 ORS

CARBON RESOURCES PVT LTD A PRIVATE LIMITED COMPANY HAVING ITS REGISTERED OFFICE AT 55B, MIRZA GALIB STREET, KOLKATA- 700016 AND ITS FACTORY AT VILLAGE- KUKURMARI, DHALIGAON, P.O. DHALIGAON, IN THE DISTRICT OF CHIRANG (BTAD), PIN- 783385, ASSAM AND IN THE PRESENT PROCEEDINGS REPRESENTED BY MR. MAHENDRA SHARMA, THE PRESIDENT (FINANCE AND ACCOUNTS) OF THE PETITIONER COMPANY. VERSUS THE STATE OF ASSAM AND 3 ORS REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT OF ASSAM, FINANCE (TAXATION) DEPARTMENT, DISPUR, GUWAHATI. 2:COMMISSIONER OF STATE TAXES (EARLIER KNOWN AS COMMISSIONER OF TAXES) ASSAM KAR BHAWAN DISPUR GUWAHATI- 781006. 3:ASSISTANT COMMISSIONER OF TAXES BONGAIGAON ASSAM. 4:DEPUTY COMMISSIONER OF TAXES DHUBRI ZONE ASSAM Advocate for the Petitioner : DR. A SARAF Advocate for the Respondent : SC, FINANCE AND TAXATION Page No.# 2/4 BEFORE HONOURABLE MR. JUSTICE ACHINTYA MALLA BUJOR BARUA

25.05.2022 ORDER Heard Dr. Ashok Saraf, learned senior counsel for the petitioner. Also heard Mr. B Gogoi, learned counsel for the respondents in the Finance and Taxation Department, Government of Assam.

#2. In the assessment order dated 01.10.2019 for the assessment year 2014- 15 under Section 36(1) of the AVAT Act, 2003 read with Rule 22(1)(x) of the AVAT Rules, 2005 in paragraphs 9 to 13 thereof the assessment authority has arrived at its conclusion that there is an entitlement for refund of the local tax paid on Intra-State purchase of declared goods subject to the condition that CST is paid on Inter-State sale of such declared goods. In the aforesaid circumstance, the petitioner has made an application for refund under Section 50(1) of the AVAT Act, 2003 read with Rules 29(1) of the Assam Value Added Tax Rules, 2005 which is available as Annexure-1 to the writ petition. Paragraphs 9 to 13 of the assessment order dated 01.10.2019 are extracted below: “9. Filing of refund petition of the amount of the amount paid against sales under exemption/remission of getting the Eligibility Certificate: The dealer had deposited the tax amount @ 1% (taking benefit of remission @ 99% vide the notification No. FTX.66/2009/117 dtd. 26/12/2011) on sales made by it during the period. Page No.# 3/4

#10. It is pertinent to mention that section 15(b) of the CST Act, 1956 provides for reimbursement of local tax paid on intra-State purchase of declared goods subject to the condition that CST is paid on inter-State sale of such declared goods.

#11. Filing of SLP by the State and dismissal of appeal by the Supreme Court: Being aggrieved against the judgement of the Gauhati High Court in the case of Guwahati Carbon Ltd. and Brahmaputra Carbon Ltd., Gauhati High Court in WP(C) No. 4586 of 2008 and 6646 of 2010, the State Government filed SLP before the Hon’ble Supreme Court [No. 12907 – 12908/2013 subsequently renumbered as 5518- 5519/2013], which was dismissed.

#12. In view of the above, clarification from the Commissioner of Taxes, Assam is sought vide this office letter No. BB/VAT/C-I/1257 dd. 13/09/2019 regarding admissibility of refund claimed under section 15(b) of the CST Act, 1956 read with section 50 of the AVAT Act, 2003.

#13. The Commissioner of Taxes, Assam vide letter No. CTS-207/2019/3 dtd. 27/09/2019 cited that the dealer is eligible to claim the refund u/s 15(b) of the CST Act, 1956 as reimbursement of local tax paid on inter-State purchased of declared goods subject to the condition that CST paid on Inter -State sales of such declared goods.”

#3. The grievance raised is that the said application has not been given its due consideration. In view of the limited grievance raised, we direct the Commissioner of Taxes, Assam to consider the application for refund at Annexure-1 to the writ petition and pass a reasoned order thereon.

#4. The reasoned order be passed within a period of two weeks from the date of receipt of a certified copy of this order and thereafter, within a period of six weeks from the date of such order the further process be brought to its logical end.

#5. To facilitate the process, a copy of the writ petition with the annexures be also furnished along with the certified copy of this order.

#6. Writ petition stands disposed of in the above terms. Page No.# 4/4 JUDGE Comparing Assistant