Civil Appeal No. 2438 of 2009 (Arising out of SLP(C) No. 21040 of 2008). Case: Indian Oil Corporation Limited Vs Commissioner of Sales Tax and Anr.. Supreme Court (India)
| Case Number | Civil Appeal No. 2438 of 2009 (Arising out of SLP(C) No. 21040 of 2008) |
| Counsel | For Appellant: Shyam Diwan, Sr. Adv., Hrishikesh Baruah, Anjun V. Bobde, Balvir Dosanjh, Jagjit Singh Chhabra, Saurav Agrawal and Amit Pawan, Advs. And For Respondents: M. Chandrasekharan, Sr. Adv., Tara Chandra Sharma, Rupesh Kumar, Neelam Sharma, Pankhuri and Kirti Renu Mishra, 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 |
| Citation | 2012 (73) KarLJ 370 (SC) |
| Judgement Date | April 09, 2009 |
| Court | Supreme Court (India) |
Judgment:
S.H. Kapadia and Aftab Alam, JJ.
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Leave granted.
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Appellant-Indian Oil 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"). Appellant-corporation sells HSD and SKO by despatching the said goods from various refineries like Jamnagar Refinery, Vizag Refinery and Chennai Refinery to 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 2,69,846.277 KL of SKO and 4,40,150.791 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 31.3.05 held that the appellant- corporation could not provide any evidence in support of Form-F and consequently the Assessing Authority recorded a finding of escapement of turnover from tax. Aggrieved 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 15.2.06 on the ground that no relevant documentary evidence has been produced to prove that the goods stood despatched to outside the State on stock transfer basis. Being aggrieved, the appellant-corporation preferred Second Appeal to the Tribunal. Similarly, the appellant-corporation approached the Commissioner for stay of the recovery which was granted vide its order dated 12.6.06.
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No sooner the Commissioner granted stay of the recovery, the...
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