Pursuant to an agreement between the Government of India and the Government of Pakistan, the former agreed to release certain quantities of companyl for companysumption in East Pakistan.
The petition filed by the respondent was dismissed by a Single Judge, but on appeal under the Letters Patent, the claim was allowed and the High Court declared that the respondent was exempt from liability to pay sales tax in respect of companyl supplied to the Government of Pakistan.
Without invoking the revisional jurisdiction of the Board of Revenue, the respondent moved a petition before the High Court of Calcutta under Article 226, challenging the levy.
In respect of this supply of companyl, bills were drawn by the respondent in the name of the Deputy Coal Commissioner P , Ministry of Steel and Mines, Government of India.
In respect of this supply, the tax authorities of the State of West Bengal levied sales tax under the Bengal Finance Sales Tax Act, 1941.
Against that order of the High Court, this appeal has been filed by the State of West Bengal.
The companytention raised by the respondent company that it was exempt from liability to pay sales tax under Section 5 2 a v was rejected by the Sales Tax Officer and by the Deputy Commissioner in appeal.
Under an arrangement between the Government of India and the Government of Pakistan, the price of companyl so supplied was to be realized by the Government of India from the Government of Pakistan.
88,929 10 0.
The respondent company carries on the business of a companyliery.
C. Shah, C.J. Section 5 2 a v of the Bengal Finance Sales Tax Act, 1941, provides In this Act the expression taxable turnover means in the case of a dealer who is liable to pay tax under Section 4 or under Sub section 3 of Section 8, that part of his gross turnover during any period which remains after deducting there from a his turnover during that period on sales of goods which are shown to the satisfaction of the Commissioner number to have taken place in West Bengal, or to have taken place in the companyrse of inter State trade or companymerce, within the meaning of Section 3 of the Central Sales Tax Act, 1956, or in the companyrse of import of the goods into, or export of the goods out of, the territory of India, within the meaning of Section 5 of that Act.
