(2011) 38 VST 392 (Gauhati) Bharat Press v. State of Assam and Others

Facts :
The dealer filed writ petition before the Gauhati High Court against the order passed by the Deputy Secretary to the Government of Assam, Election Department denying exemption to the dealer from paying VAT on printing of compendium, handbook, manuals, etc. in connection with general elections to Lok Sabha, 2009. The dealer had done printing works and supplied it to the Government of Assam and submitted bills without charging tax, being exempt from payment of tax under Schedule Entry 5 of the First Schedule of the Assam VAT Act. Under the said Entry, no tax is payable on sale of ‘Books, Periodicals and Journals.’ The Govt. of Assam informed the dealer that the payment of bills to him will be subject to deduction of VAT. The dealer then sought clarification from the Commissioner of Sales Tax for rate of tax on items supplied, who on physical verification of samples, held that goods supplied by the petitioner to the Govt of Assam are books and exempt from payment of tax, being covered by Schedule Entry 5 of the First Schedule. Despite this the Deputy Secretary to the Government of Assam turned down the request of the petitioner for no deduction of tax from the payment of bills of the petitioner. The dealer filed writ petition before the Gauhati High Court. The High Court allowed the writ.

Held :
The Commissioner of Sales Tax in his order came to the conclusion that the materials supplied by the petitioner are bound books with cover as per Entry at serial No. 5 of the First Schedule, those are exempt from payment of VAT. When the taxing authority exercising his statutory power u/s.105 of the Act is of the opinion that the supplied materials are not taxable, then whoever may be the authority higher in position is not entitled to set at naught the said order, unless the same is quashed by the appropriate Appellate Authority or by a Court of law. The High Court allowed the writ petition.