INDIAN CARBON LTD. versus SUPERINTENDENT OF TAXES, GAUHATI & ORS.

Citation: [1972] 1 S.C.R. 316 · Decided: 18-08-1971 · Supreme Court of India · Bench: K.S. HEGDE · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

316 
JN])JAN CARBON LTD. 
v. 
SUl'ERINTENDENT OF TAXES, GAUHATI & ORS. 
August 18, 1971 
[K. S. HEGDE AND A. N. GROVER, JJ.] 
Assam Sales Tax Act, 1947, Sch. 3 as amended by Assam Act 14 
of 1964--Central Sales Tax Act, 1956, "" 
14(1) 
and 
IS-Petroleum 
1·oke, if 'declared goods'. 
The appCUant was carrying on the hl1sincss of sale and purchase of 
petroleum co1<e. 
By the Amending Act (Assam) 14 of 1964 sales-tax 
\Vas leviable on the sale of' pt::troleum coke, under the Assn1n 
Sales Tax: 
Act, 1947. Under the Act the rate chargeable was 5%. The appellant 
however contended that under s. 14 of the Central Sales Tax Act, 1956, 
coal, including coke in all. its forms, was one of the 'declared goods' and 
that under s. 15 as it stood at the relevant time, the tax leviable could not 
exceed 2%.. The High Court held against the assessee on the ground that 
the word 'coke' implied only coke obtained from coal. 
Allowing the appeal to this Court, 
HELD : 
Parliament used the word 'coke' in s. 14( I) of t.hc Central 
Act in its ordinary dictionary meaning which would cover petroleum coke. 
[319 BJ 
Since the clause mentions that coal shall include coke in aU its forms, 
the object was to extend the meaning of 'coal' to include pctroleurn cok-.: 
which is one of the forms of coke. [318 G-H; 319 Fl 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1612 of 
J 968. 
Appeal from the judgment and order dated February 16, 1968 
of the .Assam and Nagaland High Court in Civil Rule No. 28 of 
1966. 
C. K. Daphtary, M. C. Chagla, J.B. Dadachan;i, P. D. Himaf· 
sinf(ka, B. P. Maheshwari and /. N. Shroff, for the appellant. 
Nauni~ Lal and Swara11;1 Sodhi, for the respondents: 
The Judgement of the Court was delivered by 
Grover, J. This is an appeal by certificate from a judg-
ment of the Assam and Nagaland High Court. 
The appellant is a company incorporated under the 
Indian 
Companies Act 1956 in the State of Assam. 
1t started its busi-
nei;s on November 17, 1962 for the first time. 
lts business in-
cludes sale and purchase of petroleum coke. 
Until September !. 
1964 no sales tax was levied or was payable by the company on 
the sale of petroleum coke because in Schedule 3 of the Assam 
Sales Tax Act 194 7, hereinafter called the 'Assam Act'. 
which 
enumerated the goods on which tax was not payable, Entry 7 
A 
B 
c 
D 
E 
F 
G 
H 
INDIAN CARBON v. SUPDT, OF TAXES (Grover, J.) 
317 
·A 
read ".coal, coke and coalgas". 
By Amending Act 14 of 19M 
the said Entry was deleted from Schedule 3 to the Assa'm Aet witk 
' effect from, September l, 1964. 
By means of a letter dated July 
7, 1964 the Superintendent of Taxes, Assam, informed the com-
pany that the petro]eum coke and gas were taxable at the rate of 
5 Np in a rupee under the Assam Act and directed the company 
B 
to submit the return for all the periods prior to September 1, 19(;.( 
and also apply for registration under the Assam Act for the sale of 
petroleum coke within the State of Ass~. The company pre~ 
ferred a petition for revision under s. 31 ( 2) of the Assam Act 
challenging the order of the Superintendent of Taxes. 
This peti-
- tion was dismissed by the Conunissioner of Taxes on September 8. 
c 
1965. 
During the pendency of the said revision petition the 
Superintendent of Taxes by his letter dated August 
14, 
1965 
D 
E 
F 
G 
H 
- modified his earlier order to the extent that the demand was con-
fined to the sale of petroleum coke subsequent to September 1, 
1964. 
The company then moved the High Court under Art. 226 
of the Constitution which was dismissed. 
In the writ petition as also. the return filed in reply thereto 
and before rthe High Court the provisions of certain other enact-
ments were mentioned. 
Thes'e were the Assam Finance Salei 
Tax Act 19 5 6 as amended from time to time and the 
~am 
(Sales of Petroleum and, Petroleum Products; ..... ) Act 1956 
as amended. It is unnecessary to refer to their relevant provi-
sions because before us it is common ground that the tax would 
be payable under the Assam Act, the only question being about 
the rate. - Under the Assam Act the rate chargeable was 5 paise 
per rupee. 
But it has been claimed on. behalf of the appellant 
that by virtue of the provisions of the Central Sales Tax Act 1956. 
hereinafter called the "Central Act", the rate at . which the tax 
would be payable is 2 paise per rupee. 
- Section 14 declares, inter alia, that coal including coke in all 
its forms constitutes goods which are of

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