M/S.Chilika Fishing vs. State Of Odisha

Facts

The petitioner, M/s. Chilika Fishing Materials & Co., filed a revision petition challenging an order dated 1st August 2013 by the Sales Tax Appellate Tribunal, Cuttack. The Tribunal had allowed an appeal by the State of Odisha against a common order dated 30th April 2012 passed by the Joint Commissioner of Sales Tax, Puri Range. The Joint Commissioner had reduced a demand raised by the Assessing Officer, Jatni Circle, for the tax periods 1st April 2005 to 31st March 2006 and 1st April 2006 to 31st October 2006. The core dispute concerned the imposition of entry tax on scheduled goods, specifically fishing nets, fishing twine, and rope, purchased from outside Odisha.

Held

The Court held that Entry No. 23 of Part I of the Schedule to the OET Act is sufficiently wide to encompass all forms of goods made of HDPE or PP, including plastic goods. The word 'including' signifies a broad scope of products, and the term 'plastic goods' is also interpreted broadly to include secondary products of plastic. The exclusion of plastic or moulded furniture does not affect the classification of fishing nets, twine, and rope. Consequently, the Court found no error in the Tribunal's decision to allow the State's appeal. The Tribunal correctly held that the products, being made from HDPE materials and thus secondary forms of HDPE and PP, are covered under Entry No. 23 and are exigible to entry tax at 1%. The Court upheld the Tribunal's order and declined to admit the reference.

Key Issues

1. Whether entry tax could be imposed on scheduled goods like fishing nets, fishing twine, and rope purchased from outside the State of Odisha, specifically under Sl. No. 23 of Part-1 of the scheduled goods under the Orissa Entry Tax Act (OET Act)? Petitioner's Contention: The petitioner argued that the goods in question could not be brought within the purview of Sl. No. 23 of Part-1 of the scheduled goods under the OET Act. Revenue's Contention: The State contended that fishing nets, fishing twine, and rope are made from High Density Poly Ethylene (HDPE) and Poly Propylene (PP), and therefore, fall under Entry Sl. No. 23 of Part I of the Schedule to the OET Act. The Tribunal relied on the Supreme Court decision in Municipal Corporation Thane v. ASMACO Plastic Industries (1999) 1 SCC 372.