GUWAHATI, India, Sept. 24 -- Gauhati High Court issued the following order on Aug. 25:
1. Heard Ms. N. Hawelia, learned counsel for the petitioners. Also heard Mr. N.J. Gogoi, learned Standing Counsel, ASAMB appearing for all the respondents.
2. By filing this petition, the petitioners have prayed for a declaration of the levy and collection of Cess by the respondents on 'coconut oil' and 'refined coconut oil' illegal and also for a direction to the respondent authority to refund the Cess amount of Rs.3,61,97,075/- with interest @ 18% per-annum, to the petitioners wrongfully and illegally collected by the respondents.
3. The petitioner No. 1 is a company incorporated under the provision of Companies Act, 1956 having its registered Office at Grade Pallidium, 7th Floor, 175 CST Road, Kalina Santacruze (E), Mumbai and is engaged in the business of manufacturing, marketing and distribution of consumer products under various popular brands such as, Parachute, Saffola, Parachute Advanced, Set Wet, Hair & Care, Nihar, Mediker, Revive, etc.
4. The petitioner has 8 (eight) manufacturing units and various branch offices/warehouses located all over the country, where, inter alia, manufactured coconut oil and sells the same under the brand name 'Parachute'. In order to ensure regular and timely supply of its products to its distributers/suppliers located all over the country, the petitioner has set up sales depot/warehouses at various locations in India.
5. The petitioner challenges the action of the respondents in levying and collecting of Cess on coconut oil and sold under the brand name 'Parachute' brought in the State of Assam by the petitioner by way of branch transfer from its manufacturing units, located at Pondicherry, Kerala and Tamil Nadu and also the collection of Cess on 'refined coconut oil' manufactured/purchased by the petitioner outside the State of Assam and brought into the State of Assam for use as raw material in manufacturing of finished goods viz. hair care products, manufactured at its unit located in the State of Assam.
6. It is the contention of the petitioner that Cess is illegally and wrongfully levied and collected by the respondents at the time of the entry of the goods into the State of Assam by stopping the vehicles carrying the said goods at the check posts located in the border of the State and by preventing the entry of the vehicles into the State of Assam unless Cess is paid on the goods even though no Cess is liable to be paid under the Assam Agricultural Market Produce Act, 1972 (in short, Act of 1972) in respect of the 'coconut oil' or 'refined coconut oil'.
7. It is contended that on a plain reading of Section 21 of the Act of 1972 in the context of meaning attributed to the key words as per their definition in the Act of 1972 shows that the Market Committee has the power to levy and collect Cess only on the agricultural purchase/specified agricultural produce which is set out in the Schedule to the Act of 1972 and that too when the said agricultural produce is bought or sold in the market area and not otherwise. Furthermore, as the words 'bought and 'sold' are not defined, the dictionary meaning is required to be attributed to the said words. Accordingly, 'bought', would mean 'obtain in exchange of payment' and 'sold', would mean 'give or hand over something in exchange for money'. Thus, it is essential that there is a transfer of title in the goods viz, agricultural produce in exchange for money, failing which no Cess can be levied and collected by the respondent.
*Rest of the document can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=eISc8sUCYnQFBVP%2BVeJCOK7FoKfD%2Bm0p5SiaqfBfjTeNMpmhK1kIug2D41qjKzYw&caseno=WP(C)/1101/2017&cCode=1&cino=GAHC010013872017&state_code=6&appFlag=)
Disclaimer: Curated by HT Syndication.
