Civil Appeal No. 8353 of 2009 (Arising out of SLP (C) No. 19799 of 2008). Case: Hindustan Petroleum Corporation Limited Vs Commissioner of Sales Tax and Anr.. Supreme Court (India)
| Case Number | Civil Appeal No. 8353 of 2009 (Arising out of SLP (C) No. 19799 of 2008) |
| Counsel | For Appellant: Gourb Banerji, ASG., Saurav Agrawal, Haseeb, R. Dubey and Amit Pawan, Advs and For Respondents: Chandrasekharan, Sr. Adv., Kirti Renu Mishra, Tara Chandra Sharma, Neelam Sharma and Rupesh Kumar, Advs. |
| Judges | S.H. Kapadia and Aftab Alam, JJ. |
| Issue | Central Sales Tax Act, 1956 - Section 6A and 6A(2); Orissa Sales Tax Act, 1947; Orissa Sales Tax Rules - Rules 10 and 12(8) |
| Citation | 2010 (2) SCALE 326 |
| Judgement Date | December 11, 2009 |
| Court | Supreme Court (India) |
Order:
S.H. Kapadia and Aftab Alam, JJ.
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Leave granted.
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Appellant-Hindustan Petroleum Corporation is inter alia engaged in the business of refining and selling of petroleum products including High Speed Diesel (HSD) and Superior Kerosene Oil (SKO). Appellant-corporation is a registered dealer in the State of Orissa for the purpose of Central Sales Tax Act, 1956 (for short, "CST Act").
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Appellant-corporation sells HSD and SKO by dispatching the said goods from various refineries to the Haldia Port, West Bengal. Since, Big Ocean Tankers cannot be sent to the Haldia Port, West Bengal, the entire load of SKO and HSD which are carried by the Big Ocean Tankers are unloaded in the appellant-corporation's Terminal at Paradeep Port, Orissa. Out of the said stock a certain portion of the goods is used for local sales inside the State of Orissa and sales tax under Orissa Sales Tax Act, 1947 is paid. The remaining portion is moved to Haldia Port in West Bengal by way of Small Tanker Vessels on "stock transfer" basis.
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During the assessment year 2001-02 the appellant-corporation moved HSD and SKO from Paradeep Port, Orissa to Haldia Port, West Bengal in the total quantity of 31,976.331 KL of SKO and 2,10,285.507 KL of HSD respectively. The ownership and title of the goods remained with appellant-corporation as can be seen from the Bill of ladings. The appellant-corporation furnished a declaration in terms of Form-F declaring that the movement of the subject-goods stood occasioned by stock transfer and not by inter-State Sale.
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The Assessing Authority vide its order dated 23.03.2005 held that "as the dealer assessee could furnish declaration form 'F' for the entire stock transfer effected to the tune of Rs. 331,63,04,081.97, the dealer assessee is allowed the stock transfer claimed". However, the Assessing Authority did not accept the assessee's explanation regarding wrongful inclusion of certain sales to M/s IBP & Co. as inter state sales. Aggrieved to this extent by the decision of the Assessing Authority, the appellant-corporation preferred statutory appeal before the first appellate authority which dismissed its appeal vide order dated 26.12.2005. Being aggrieved, the appellant-corporation preferred Second Appeal to the Tribunal.
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While the appeal was pending, the Assessing Authority gave notice to the appellant-corporation on 29.12.06 seeking to reopen the assessment on the ground that a portion of the total turnover had escaped...
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