SINGARENI COLLIERIES CO. LTD. versus STATE OF ANDHRA PRADESH AND OTHERS

SINGARENI COLLIERIES CO. LTD. versus STATE OF ANDHRA PRADESH AND OTHERS

Coal supplied by the appellant to consumers outside the taxing State under the Colliery Control Order is not liable to sales tax under the Hyderabad General Sales Tax Act, 1950 because such sales are either covered by Explanation to Article 286(1)(a), or are inter-State sales not taxable by the State, and after January 5, 1957, such sales are taxable only under the Central Sales Tax Act, 1956.

Parties
Appellant: Singareni Collieries Co. Ltd.; Respondents: State of Andhra Pradesh and Others; Intervener 1: M. Adhikari, Advocate-General, Madhya Pradesh; Intervener 2: intervener 2; Intervener 3: intervener 3; Intervener 4: intervener 4; Intervener 5: intervener 5
Jurisdiction
India
Judgment Date
12 October 1965
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeals allowed
Legal Topics
Sales Tax Liability, Inter State Sales, Article 286 of the Constitution, Controlled Commodities
Taxation Constitutional Law Sale of Goods Sales Tax Liability Inter State Sales Article 286 of the Constitution Controlled Commodities

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Parties

Singareni Collieries Co. Ltd.

Appellant

State of Andhra Pradesh and Others

Respondents

M. Adhikari, Advocate-General, Madhya Pradesh

Intervener 1

intervener 2

Intervener 2

intervener 3

Intervener 3

intervener 4

Intervener 4

intervener 5

Intervener 5

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether coal supplied to allottees outside the taxing State, pursuant to allotment orders under the Colliery Control Order, 1945, is liable to sales tax under the Hyderabad General Sales Tax Act, 1950
  2. 2 Whether such sales are exempt under Explanation to Article 286(1)(a) or as inter-State sales

Ratio Decidendi

Coal supplied by the appellant to consumers outside the taxing State under the Colliery Control Order is not liable to sales tax under the Hyderabad General Sales Tax Act, 1950 because such sales are either covered by Explanation to Article 286(1)(a), or are inter-State sales not taxable by the State, and after January 5, 1957, such sales are taxable only under the Central Sales Tax Act, 1956.

Court Disposition

Appeals allowed

Orders

  • Order of High Court set aside
  • Turnover of the company for 1954-55 (Rs. 1,75,67,286/1/2), 1955-56, and 1956-57 (Rs. 1,55,18,957/6/5) is exempt from sales tax under Hyderabad General Sales Tax Act, 1950