Case: Sun Oil Company  Vs. State Of West Bengal

2. The facts giving rise to this question lie in a short compass and are not in dispute. Theis carrying on business of the manufacture of lubricating oil and grease. It was granted certificate of registration under the West Bengal Sales Tax Act, 1954 (for short "the Act"). A certificate for permanent registration as aindustry was granted by the Directorate of Cottage andIndustries, Government of West Bengal. Under the Act, the authorities granted exemption from payment of sales tax for the period commencing from85 by certificate datedNotwithstanding the said certificate of exemption for the period of four quarters ending onthe appellant was assessed to turnover tax in a sum of Rs. 1, 18, 357.66 p. and a penalty of Rs. 2000 was also imposed under the Bengal Finance (Sales Tax) Act, 1941. The appellant filed appeal against the order of assessment before the Assistant Commissioner of Commercial Taxes who confirmed the order of the Commercial Tax Officer that the eligibility certificate does not absolve it of the liability to pay turnover tax under Sectionof the Act. The appellant then assailed the order of the Assistant Commissioner in the West Bengal Taxation Tribunal. By its order datedthe Full Bench of the Tribunal dismissed the appeal. From the said order of the Tribunal, this appeal is filed by special leave

Reasoning: 7. From a perusal of the notification, it is evident that the expression used here is, the Governor is pleased to direct that "no tax" shall be payable by a dealer under the said Act which obviously refers to the tax under Section 4 but not to "turnover tax" imposed under SectionIn this view of the matter, we overrule the judgment of the learned Single Judge of the Calcutta High Court to the contra in ABN Food and Beverage (P) Ltd. v. Asstt. Commr. of Commercial Taxes, South Circle(Cal)) and approve the conclusion in the judgment of the Full Bench of the Tribunal in Kejriwal Electronics (P) Ltd.Co. v. CTO (WBTT)) holding that aindustrial unit was not entitled to exemption from payment of turnover tax during the period of the validity of the eligibility certificate by virtue of notification issued under Sectionof the Act