Coke briquettes prepared from coal-dust, soil, and molasses are covered under Sec. 14(ia) of the Central Sales Tax Act, 1956, as "coal, including coke in all its forms".

N.P.Singh, J.

1. These writ applications have been filed on behalf of different petitioners for quashing a communication dated 10th January, 1986, issued by the Deputy Commissioner, Commercial Taxes, Bihar, to the different Assistant Commissioners, Commercial Taxes, to treat briquettes prepared from coal-dust as "unspecified goods" over which sales tax payable was at the rate of 8 per cent.

2. It is the case of the petitioners that they manufacture coke briquettes meant for domestic consumption by mixing coal-dust, soil and molasses by mechanical process. According to the petitioners, as the coke briquettes are prepared from coal-dust, it will be deemed to be declared goods under Sec.14(ia) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") over which sales tax cannot exceed 4 per cent of the sale or purchase price thereof, in view of Sec.15(a) of the Act.

3. In the counter-affidavit filed on behalf of the respondent-State, which has been sworn by the Commercial Tax Officer, the assertion made on behalf of the petitioners regarding the ingredients and process of manufacturing of the coke briquettes has not been denied. It has been stated:

The deponent further states and submits that coal briquettes are not coal nor coke as these are manufactured mechanically by mixing coal-dust, soil and molasses.

As such it is not in dispute, in the present writ applications, that the petitioners are manufacturing briquettes by mixing coal-dust with soil and molasses which are being used for domestic use. The controversy is only as to whether such briquettes can be held to be either coal or coke so as to be held to be declared goods within the meaning of Sec.14(ia) of the Act.

4. The relevant part of Sec.14 of the Act is as follows:

14. Certain goods to be of special importance in inter-State trade or commerce.- It is hereby declared that the following goods are of special importance in inter-State trade or commerce:-

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(ia) coal, including coke in all its forms, but excluding charcoal: Provided that during the period commencing on the 23rd day of February, 1967 and ending with the date of commencement of Sec.11 of the Central Sales Tax (Amendment) Act, 1972 (61 of 1972), this clause shall have effect subject to the modification that the words but excluding charcoal shall be omitted.

Sec.15 prescribes the restrictions and conditions in regard to tax on sales or purchase of declared goods within a State. The relevant part of Sec.15 is as follows:

Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely:-

(a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed four per cent of the sale or purchase price thereof and such tax shall not be levied at more than one stage;....

5 Article 286(3) of the Constitution says :

Any law of a State shall, in so far as it imposes, or authorises the imposition of,- (a) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce ;

...

be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify. In view of the aforesaid mandate under the Constitution, any law to be made by the State imposing a tax on sale or purchase of goods declared by Parliament to be of special importance, in inter-State trade or commerce, has to be subject to such restrictions and conditions as specified by the Parliament; as for the present by Sections 14 and 15 of the Act. This legal position has not been contested by the respondents. But, according to them, the briquettes prepared by the petitioners are neither coal nor coke in any form but a separate unspecified goods in respect of which the restrictions and conditions imposed by Sec.15 of t