National Dairy Development Board vs Commercial Tax Officer and Others

M.N. Rao, J.—An order of assessment made under the Central Sales Tax Act, 1956 on March 14, 1985 is challenged in this writ petition by the National Dairy Development Board. Admittedly, the Central Sales Tax assessment order, dated March 14, 1985, was not challenged by way of an appeal or revision and the assessment order, therefore, became final.

In respect of the assessment year 1983-83, there was an agreement between the petitioner and a Calcutta based Corporation called Mother Dairy for supply of 120 tonnes of while butter. The petitioner in turn asked M/s. Guntur District Milk Producers'' Co-operative Unite Limited (popularly known as "Sangam") - fourth respondent herein to supply the same to Mother Dairy, Calcutta. Accordingly, the requisite quantity of white butter was supplied by the fourth respondent to Mother Dairy Calcutta. The case of the petitioner is that when the goods were in transit, documents were transferred in favour of Mother Dairy, Calcutta; consequently, the transactions amounted to second inter-State sales and therefore, are exempt from levy of Central sales tax by virtue of section 6(2) of the Central Sales Tax Act. There is no record whether this plea was specifically taken before the assessing authority, However, the order of assessment was made under the Central Sales Tax Act on March 14, 1985 by which the transactions were treated as inter-State sales liable to tax under the Central Sales Tax Act.

In the proceeding under the Andhra Pradesh General Sales Tax Act, 1957, the case of the petitioner is that the assessing authority subjected the turnover relatable to 120 tonnes of white butter to tax taking the view that the petitioner is the last purchaser in the State and therefore, it is liable to tax under entry 5 of Schedule II of the Andhra Pradesh General Sales Tax Act. On appeal, the Deputy Commissioner of Commercial Taxes, accepting the plea of the petitioner that the transaction were inter-State sales, set aside the assessment order. However, the Joint Commissioner of Commercial Taxes, in exercise of his revisional jurisdiction, passes on order on July 18, 1989 restoring the original order of assessment. When the same was challenged before the Sales Tax Appellate Tribunal in T.A. No. 957 of 1989, the Tribunal restored the appellate order of the Deputy Commissioner of Commercial Taxes accepting the plea of the petitioner. The order of the Tribunal was passed on August 28, 1992.

It is contention of the learned for the petitioner that the turnover brought to tax under Central Sales Tax Act in assessment order, dated March 14, 1985, is liable to be exempted since it represents second inter-State sales. On this ground, the petitioner seeks quashing of the assessment order.

We cannot accept the plea of the petitioner. It is not possible for us, in this writ petition, to go into question - whether the turnover brought to tax in the assessment order, dated March 14, 1985, was exempt from the purview of the Central Sales Tax Act on the ground that it represents second inter-State sales. That is a matter for the statutory authorities to consider and pass appropriate orders on the basis of the available evidence. Admittedly, there was no appeal or revision against the assessment order, dated March 14, 1985 made under the Central Sales Tax, and it attained finality.

The writ petition, therefore, fails and accordingly it is dismissed. No order as to costs.

Writ petition dismissed.