INDIAN CARBON LTD. vs SUPERINTENDENT OF TAXES, GAUHATI & ORS.

The Supreme Court ruled that the appellant company is liable to pay sales tax on petroleum coke under the Assam Sales Tax Act, 1947, following the amendment that removed the exemption for such goods effective September 1, 1964. The Court clarified that while the Assam Act imposes a tax rate of 5 paise per rupee, the Central Sales Tax Act, 1956, limits the tax on declared goods like coal and coke to 2 paise per rupee. Consequently, the Court held that the tax payable by the appellant should be at the rate of 2 paise per rupee as per Section 15(1) of the Central Act, thereby modifying the earlier demand of the Superintendent of Taxes.