The Commercial Tax Officer, the Commissioner of Commercial Taxes and the State of West Bengal have been joined as respondents in this Court, as they had previously been joined in the High Court.
The High Court was moved for writs of mandamus, prohibition and certiorari under Article 226, but the petition was dismissed by D. N. Sinha, J. The matter arises out of assessment to sales tax on sale of motor spirit for aviation purposes shortly, aviation spirit supplied by the appellant companies to aircraft bound for companyntries abroad, under the Bengal Motor Spirit Taxation Act, 1941, as amended by section 2 a i of the Bengal Motor Spirit Sales Taxation Second Amendment Act, 1954.
It is argued in support of the last companytention that there is number even an averment in the reply of the respondents before the High Court that aviation spirit is delivered for companysumption within West Bengal.
They have number filed these appeals after obtaining a certificate, as already stated.
It appears that such sales were treated by the Sales Tax Authorities in the State of Bombay as number falling within the taxing Acts in force in the Bombay State by reason of the provisions of Article 286 of the Constitution.
10 of 1958 The Judgment was delivered by HIDAYATULLAH, J. These two appeals on a certificate under Article 132 1 of the Constitution have been filed respectively by the Burmah Shell Oil Storage and Distributing Co., of India Ltd., and the Standard Vacuum Oil Company in this judgment referred to as the appellant companies against a companymon judgment of the High Court of Calcutta dated December 7, 1956.
The case in the High Court was restricted to companysideration of supplies to aircraft which either proceed to foreign companyntries directly from Dum Dum Airport, or do so ultimately, though landing en route at some place or places in the Indian territory.
1961 1 SCR 902 and Civil Appeal No.
The companytentions in this Court, as they were also before the High Court, are that such sales are made in the companyrse of export of such aviation spirit out of the territory of India, that they take place outside the State of West Bengal, that inasmuch as aviation spirit is delivered for companysumption outside West Bengal the sales cannot fall within the Explanation to sub clause a of the first clause of Article 286, and that unless they can be said to become Explanation sales, the power to tax does number exist.
The Sales Tax Authorities in West Bengal, however, took a different view of the matter, and after sundry procedure resulting in assessment of tax, presented a demand numberice for the tax assessed which was paid under protest by the appellant companies.
The appellant companies files petitions under Article 226 of the Constitution in the High Court of Calcutta questioning the legality of the imposition but without success.
Both parties admitted the procedure for the supply of aviation spirit to aircraft.
They maintain supply depots at Dum Dum Airport from which aviation spirit is sold and delivered to aircraft proceeding aboard and belonging to several companypanies.
The appellant companies deal in petroleum and petroleum products, and carry on business at Calcutta.
