Case: THE STATE OF JHARKHAND Vs. M/S. AKASH COKE INDUSTRIES PVT. LTD

2. By the impugned judgment passed in a Writ Petition, the High Court has directed the appellants to reimburse the State Sales Tax paid by the respondent-writ petitioner towards the purchase of coal with statutory interest. The respondent-writ petitioner purchased coal within the State of Jharkhand. It paid sales tax in a sum Rs.17,89,412/-. Coal was thereafter converted to coke. The coke was thereafter sold by way of inter-state sale. On the inter-state transaction, Central Sales Tax was levied and it was paid in a sum of Rs.63,80,573/-. Thereafter, the respondent filed an application for refund of the Sales Tax paid on the inter-state purchase of coal under Section 15(b) of the Central Sales Tax Act, 1956 (hereinafter referred to as ‘the Act?). A perusal of the impugned judgment would show that with the refund application, excess demand notice was not allegedly sent as per Rules 35(4) and 35(6) read with Rule 34(2) of the Bihar Sales Tax Rule, 1983. The High Court, however, rejected the contentions on the followingThe contention raised by the learned counsel appearing for the respondents that with refund application excess demand notice was never annexed as per Rules 35(4) and 35(6) to be read with Rule 34(2) of the Bihar Sales Tax Rules, 1983. This contention is not accepted by this Court mainly for the reasons of the following absolutely undisputedSales Tax paid under the State Sales Tax by this petitioner for purchase of the coal as an intra- state sale is atThe coal is converted into coke and now the coke is sold as an inter-state sale. Hence, Central Sales Tax has to be paid @ 4% because the same is declared goods of special importance under Section 14 of the CST Act. For the Central Sales Tax, there is an order of assessment and there is payment of Sales Tax also, which is atAs per Section 15(b) of the CST Act, when end product is sold as inter-state sale and Central Sales Tax is already paid and for the purpose of raw material if any tax is paid under the State Sales Tax, the same shall be reimbursed.?

Court's reasoning:
This is despite the fact that both the goods which were purchased by way of intra-State transaction and the goods which are subject matter of the inter-State transaction are both declared goods under Section 14 of the Act.It is on these pleadings that High Court proceeded to consider the petition and pass the order which we have already adverted to. There was absolutely no whisper in the counter affidavit or additional affidavit filed by the appellants seeking to project the dispute that Coal purchased by the respondents was not the same good as Coke manufactured out of Coal and, therefore, on sale of Coke in an inter-state Sale, the respondent is not entitled to get refund of the tax paid on the intra- state purchase of Coal.The same issue is involved in the other connected appeal, i.e., Civil Appeal arising out of SLP(C)No.2407/2018.