MYSTERIOUS WAY TO EXTRACT TAX ON GREEN TEA LEAVES

The tea garden lands of Assam have been playing a prominent role in the agricultural, industrial and commercial aspects in the State scenario. The State is blessed with the flow of incoming revenue derived out of tax on sales, tax on agricultural income, tax on specified land, apart from the land revenue, revenue on electricity duty, revenue on professions, trades, employments etc. tax. Though the Assam tea has been facing an acute competition in the global commercial market, the good name of the Assam tea is still being maintained, as a whole.
Some pertinent question in relation to the measures of tax, adopted in Assam has apparently been visible and it is necessary to make an analysis on the same.
Exemption of tax on Green tea leaves
The First Schedule of the VAT Act has specified series of goods, exempted from tax under Section 9 of the VAT Act and hence no tax is leviable on the sales of such goods made within the State of Assam. The sales of such goods made in the course of inter-State trade or commerce are as well to be treated as tax free. Entry 41 of the said Schedule laid -down that ‘Unprocessed green leaves of tea’ is exempted from tax. The ‘Tentative Commodity List of Vatable Goods’, finalized by the Empowered Committee, contained also that ‘Unprocessed green leaves of tea’ is exempted from tax under the VAT Act.
.Concept of Specified Land Act
Clause (3) of Article 246 read with entry 49 of List-II (State List) in the Constitution vested powers to the State Legislature to make law in respect of ‘Tax on Land and Building’. In exercise of the said powers, the Legislatures of Assam enacted the “Assam Taxation (On Specified Lands) Act, 1990” (Lands Act), which came into effect from the 1st January, 1990.
The preamble of the Lands Act laid down that it is a tax imposed on certain categories of land. The levy of such tax is to be made on the annual productivity of such specified lands. The specified lands includes, inter-alia, the tea garden lands and the annual productivity of the green tea leaves on weight (in Kilogram) basis is the measuring scale for the purpose of levy of tax on such tea garden lands.
In the original Act effective from the 1st January, 1990, the rate of tax was fixed at 50 paise per Kilogram. The validity of the Lands Act was challenged by a number of tea gardens and tea organizations before the Gauhati High Court and the Supreme Court of India. During the pendency of the cases, however, a Memorandum of Understanding (MOU) was signed between the Government of Assam and the various tea organizations and the rate of tax was reduced from 50 paise to 18 paise with a retrospective effect from the 1st January, 1990. The Lands Act was amended from time to time and with effect from 31st March, 1997, the tea garden lands, the aggregate area of which did not exceed four hectares, were exempted from payment of such land tax.
The numbers of tea estate in Assam and the production of green tea leaves in such tea estates, as were projected in the Statistical Hand Book of Assam, 2007 are, as below:
Year Nos. Quantity produced (in weight)
2002- 43272 43,33,27,000 Kg.
2003- 43293 43,47,59,000 Kg.
2004- 43296 43,56,49,000 Kg.
2005 - 47,41,37,000 Kg.
The numbers of tea gardens and the productivity of tea thereof must have gone to a much higher side during these long five or six years, which particular is, however, not available readily. The collection of tax under the Lands Act was ascertained from the tax department sources, which is as below :
2002-2003 – Rs. 52.93 crore
2003-2004 - Rs. 56.17 “
2004-2005- Rs. 45.29 “
2005-2006 - Rs. 52.18 “
2006-2007- Rs. 53.68 “
The revenue yield from the green tea leaves under the Lands Act seems to be not upto the mark and due taxes were not likely to have been paid by a number of tea gardens.
Some of the tea estates, the numbers of which are exhibited above, do not have any tea manufacturing units (industrial units). Those tea garden units use to make sale of the green tea leaves to the tea industrial units for manufacture and sales of black tea. The numbers of tea manufacturing units in Assam are roughly in between 750 and 800. Some tea gardens, as it could be learnt, made bifurcation or trifurcation of the original units and made the same smaller ones so as to enjoy the benefit of exemption of taxes, as provided in the amended Lands Act of 1997 effective from 31st March, 1997. A huge loss of revenue is thus being incurred annually since 1997-98.
Proposal to levy Cess on the bought- tea leaves in Assam
While presenting the Budget for the 2008-2009 in the House of Legislature of Assam on the 10th March, 2008, the Chief Minister of Assam submitted as proposal before the House for levy of Cess on the green tea leaves. The portion of the speech is reproduced hereunder:
“A large number of bought-leaf factories have come up in Assam. These bought –leaf factories purchase green leaf and manufacture tea. However, unlike established tea companies, these bought-leaf factories do not contribute any revenue to the State Exchequer. They are unable to maintain quality of tea. At present, these bought-tea factories and some established companies who manufacture tea from bought-leaf do not pay any Cess on green tea leaf purchased by them. I propose to levy Cess at therate of 20 paise per kilogram of green tea leaf purchased by them. This rate is much lower than the rate at which the established tea companies pay Cess. The established tea companies pay Cess at the rate of 32 paise per kilogram of green tea leaf in Brahmaputra Valley and 29 paise per kilogram of green tea in Barak Valley. I propose to raise a Development Fund from the revenue collected for development of small and marginal tea growers, welfare of the tea labourers in organized sector and improvement of quality of Assam tea.”
‘Cess’ means a tax or duty. A cess or duty is not generally levied on the sale or purchase of goods for which separate enactment, namely; the VAT Act is there. It is generally levied other than on the sale or purchase of goods. The Budget proposal of the Chief Minister of Assam contained that a Cess would be levied on the sale of green tea leaves at the rate of 20 paise in the rupee. The proposal did not indicate specifically the Act under which such Cess was proposed to be levied.
Tax measures under Lands Act
The Legislatures of Assam by an amendment of the Lands Act ( Assam Act IV of 2009) incorporated some provisions in the Lands Act and the same was given effect from the 12th day of February, 2009. The amendment reads as:
Section 6A-“ Every person engaged in manufacture of tea and responsible for making any payment or discharging any liability on account of any amount purported to be the full or part payment of sale price or consideration for purchase of green tea leaf, shall, at the time of credit to the account of or payment to the seller of such amount in cash, by cheque, by adjustment or in any manner, whatsoever, deduct tax calculated at the rate 20 paise per kilogram and deposit the same in the State Exchequer in such manner as may be prescribed.”
(The rate of such tax was enhanced to 25 paise per kilogram with effect from 29.04.2010.)
The said amendment provided also : (i) the ways and means for deduction of tax at source and deposit thereof and to issue a tax deduction certificate to the sellers of the green tea leaves by the purchasers; (ii) submission of return and statement of deduction of tax by the purchasers; (iii) interest for non-deduction and non deposit of the deducted tax at the rate of 1.5 paise per month; (iv) imposition of penalty for any violation of the provisions of the Lands Act and (v) institution of case in the court of law for any offence.
Levy of tax on the sales of green tea leaves- controversial
In the amendment of Lands Act, the authority of law under which such amendment was made has not been quoted. It also maintained silence as to the authority under which the tax was levied on the sale or purchase of such green tea leaves in the said Lands Act, contrary to the basic principle of levy of tax on the tea gardens lands on the productivity of green tea leaves as the measuring scale.
The question of law as has been cropped up in such exercise are discussed below :
(1) The item green tea leaf is exempted from tax, as exhibited in the First Schedule of the VAT Act. Hence, no tax is leviable on the sale or purchase of such green tea leaves under the VAT Act, which was enacted under the authority of clause (3) of Article 246 read with entry 54 of List II (State List) in the Seventh Schedule of the Constitution;
(2) No other Constitutional authority was provided to levy tax on the sale of such green tea leaves, sold by the producing tea garden to the manufacturing tea gardens;
(3) The main theme and ideology of the Lands Act is that, a tax is leviable under the Act, on the annual productivity of the green tea leaves, produced. The said Act provided no scope to levy of tax on the sale or purchase of green tea leaves, which ,in fact, are exempted from the sales tax under the VAT Act, governing the principle of levy of tax on the sale or purchase of goods in Assam ;
(4) When the aggregate area of the tea garden lands held by a person does not exceed four hectares, no tax is leviable on such lands, implying thereby that the annual productivity of green tea leaves in respect such tea garden lands, are not to be reckoned for the purpose of taxability under the said Lands Act;
(5) The new measure of tax on the sales of green tea leaves incorporated in the Lands Act from 12.02.2009 obviously created a clash and conflict with the provisions VAT Act as well as a portion of the Lands Act;
(6) The tax deduction on the weight of the green tea leaves (on the basis of kilogram) has a direct clash with the principle of levy of tax on the sale or purchase of goods, where value consideration gains the momentum;
(7) The new measure of levy of tax seems to be something unforeseen and extra-ordinary, as the newly inserted Section 6A was a measure to deduct tax at source, while liability to pay tax on such sales of green tea leaves was not given berth in the amended Lands Act;
(8) The term ‘sale’ has not been defined in the Lands Act and the basic principle of levy of tax on the sales of green tea leaves also not accommodated in the Lands Act and it seems to some extent as extra-ordinary exercise of territorial jurisdiction;
(9) The basic ingredients required for the levy of tax on the sales of green tea leaves has not been incorporated in the Lands Act;
(10) The amended Act incorporated the levy of ‘tax’ on green tea leaves is contrary to proposal of levy of ‘Cess’, as reflected in the Budget speech of the Chief Minister of Assam.
The entire matter relating to levy of tax on green tea leaves seems to be controversial and review is necessary by the Government.
Solution suggested
This zig-zag process of levy of tax may have a far-reaching ill consequence to the revenue generation of the State. Since the intention of the Legislature of the State to safe guard the revenue of the State by way of levy of tax on the green tea leaves sold to the bought-leaf factories for manufacture black tea and to make sale, therefore, the Government may consider the following suggestions for the greater interest of the revenue of the State:
(i) That, the exemption tax in respect of the aggregate area of the specified lands held by a person a person not exceeding four hectares of land, as occurred in clause (a) of Section 5 of the Lands Act, may be revoked or withdrawn;
(ii) The lands, held by a person not exceeding four hectares of land, are also to be brought under the purview of tax- net of the lands Act and the provision of the said Act has to be applied in all cases;
(iii) The liability to make payment of tax, submission of returns will rest with such tea garden land owners, as envisaged in the Lands Act and the rules, framed thereunder.
However, in order to ensure that proper payment of tax has been made by such land owners, it may made as a condition that the green tea leaves handed over to the tea manufacturing factories, such land owners are to adduce proof that the tax due to State Exchequer has been paid. In alternative, such manufacturing factories may be authorized to deduct the requisite tax, while making payment green tea leaves for manufacturing or other allied purposes. The appropriate wordings will be’ the green tea leaves placed with the tea factories for manufacture or other allied purposes instead of the words ‘sale or purchase of green tea leaves’.

(Mrinal Kanti Chakrabartty)
“ Rudra Bhawan”
R.G. Barua Road, 10- Lakhimipath, Guwahati-781024

A brief of the Article on Basistha Temple.

The Article “AOITIHASHIK BASISTHA MANDIR” (TRADITIONAL BASISTHA TEMPLE), written by me in Assamese published in the Janasadhran- Sunday Magazine “Ityadi” on 6th June, 2010, reflected the present picture of the holy shrine, where Maharshi Basistha of the Ramayana era made an end of his life. The grave inside the temple, where the body of the great sage is taking eternal rest , attracts many pilgrims not only of Guwahati or Assam, but the people from different places of India use to come to offer worship to the renowned sage, who is also well known for his miraculous ‘Kamdhenu giving milk, whenever necessary. The Bashistha river, rolled by the side of the Samadhi, had three channels, namely; Sandhya, Lalita and Kanta, where the great sage used to make “Trisandhya’ (meditation & worship) in the morning, evening and noon.
The Article presented a picture of the miserable environmental scenario of the temple side including the approaching roads, which is intended to attract the attention of the Guwahati Development Authority as well as the Government of Assam.

Journey never ends

‘A journey from the grass root level towards the sky’. Though it is an absurd thought to reach the sky there is an endeavour to go higher and higher to reach the mount of glory. I keep it in my mind to go ahead with some constructive ways of life, but certain factors are responsible to discourage me on the way. First, is my ill health due loss of the glamour and energy of youth at this age of seventy three; second, is inadequate time, as I have to remain very busy with some important self-imposed assignments. Still then, I work hard daily leaving a portion specially reserved for sound sleep in the night hours. I will make all efforts to go ahead so as to serve the society on way to make services to the nation with an acute trust in God.”

TAX ADMINISTRATION IN ASSAM

Tax is a contribution, extracted by the Government in the form of revenue to the State Coffer. No Government can exist without taxation. This money, in fact, is to be levied to the people and the grand art consists of levying so as not to oppress.

AIM AND OBJECT
The aim and object of the tax administration is to make generation as well to cause mobiliza¬tion of revenue resources for the purpose of augmentation to the State Coffer within the frame work of law, enacted by the Legislatures of the State in a systematical and methodical way.

TAXING AUTHORITIES
The Commissioner of Taxes (Commissioner) is the supreme authority in the field of administration for carrying out the purposes of the taxation laws of the State. He is to be assisted by a set of officers, namely; the Additional Commissioners of Taxes, Joint Commissioners of Taxes, Deputy Commis¬sioners of Taxes, Assistant Commissioners of Taxes, Superintendents of Taxes and the Inspectors of Taxes, appointed by the Government, specifying its territorial jurisdiction. The Agricultural Income Tax Officer is assigned to carry out the administration of the Assam Agricultural Income Tax Act, 1939. The post is manned by the cadre of the Superintendents.

COMMISSIONER OF TAXES
The Commissioner is an Ex-cadre post and the member of the lndian Administrative Service cadre ornaments this post He is entrusted to govern the tax administration with the help of the seasoned and veteran officers of the cadre posts. Primarily, he is not supposed to know the inner visions and techni¬calities and the taxing authorities, appointed to assist him, are to guide him in a right and proper way with unbiased briefs, clean and crystal projection of the facts. The notes are to be law, fact and docu¬ment based and are to be processed chronologically from the grass root level and onwards so as to adopt a constructive and judicious decision, implying thereby that, such a process is knowledge and experience oriented. Unless there is righteous advice and guidance, there may derailment or disrup¬tion in the walk on the main orbit smoothly and efficiently.

BIRTH OF THE TAXATION DEPARTMENT
Taxation department is a post child after the independence of India. In pre-independence period, the taxation laws, namely, the Assam Agricultural Income Tax Act, 1939, the Assam Sales of Motor Spirit and Lubricants Taxation Act, 1939 and the Assam Amusement and Betting Tax Act, 1939 (operative since 1.4.1939,1.4.1939and 1.8.193 9 respectively), enacted under the Government of India Act, 1935, were administered by the Excise Department of the Government of Assam. After the enactment of the Sales Tax Law (the Assam Sales Tax Act, 1947) from 24.12.1947 under the Government of India Act, the taxation department took its birth. All the above taxation Laws including the Assam Professions Trades, Callings and Employments Taxation Act, 1947 (operative from 1.4.1947), enacted also under the Government of India Act, 1935, received proper safe guards under saving provisions, as envisaged in Article 277 of the Constitution of India (Constitution) adopted and effected from 26.1.1950. There are as many as nine taxation laws operative in Assam.

Two taxation laws, namely; the Assam Taxation) on Goods carried by Roads and Waterways) Act, 1954 and the Assam Tax on Luxuries Act, 1997 were nullified by the Hon'ble Supreme Court of India. A portion of the taxation law, namely; the Assam Entry Tax Act, 2001 was also declared to be null and void by the Hon'ble Gauhati High Court, but the State Legislature repealed the earlier Act and made re-enactment of the same in 2008, which became effective from 1.6.2008. The new Act is to give safe guard of the erstwhile incomplete proceeding and tax recovery of the old Act and the tax already collected, but all proceedings under the 2008 Act are to be taken up denovo for the purpose of admin¬istration of the new Act. Two other Acts, namely; the Assam Passengers and Goods Taxation Act, 1962 and the Assam Urban and Immoveable Properties Act, 1963 administered by the taxation department, were transferred to the Transport and Municipal Department in 1989 and 1971 respectively.

POWERS AND FUCTIONS OF THE TAXING AUTHORITIES
The power and functions of the taxing authorities are of three folds : (i) Executive, (iii) Quasi-judicial and (iii) Administrative. The former two are in relation to the administration of the taxation laws and the last one is for general administration.
The bifurcation of executive and quasi-judicial powers in the process of administration of the taxa¬tion Laws was essential, keeping in view, the mandatory provision of Article 50 of the Constitution, that is, the doctrine of Separation of Powers. The encroachment of powers by the executive exercising the quasi-judicial power at the same time may be counted to be pre-judicious, as will be evident from the verdicts of the Hon' ble Courts of law. An investing officer or any team of officers is not to exercise the quasi-judicial powers for the same issue.

APPOINTMENT AND DELEGATION POWERS
The taxing authorities of the State are appointed by the State Government by notification in the Official Gazette with specification of the territorial jurisdiction. Only the Government can modify, extend or curtail such jurisdiction and none else. The Commissioner is to delegate his powers to the category-wise of officers subject to the conditions and restrictions imposed in the Act and the rules keeping in view the territorial jurisdiction, specified by the State Government. There should not be any overlapping or encroachments in the power delegation and power exercise scenario.

SHORTFALLS IN DELEGATION OF POWERS
The Assam Value Added Tax Act, 2003 (VAT Act) came into operation from 1.5.2005. In the power delegation scenario, some shortfalls became obvious and reconciliation seems to be incumbent for proper and smooth administration of the VAT Act. For instance, the scope of power delegation has been restricted in rule 6 of the rules, framed under the VAT Act. This seems to have not been rightly observed. In the said rule, there is no scope for delegation of powers to the Assistant Commissioners of Taxes, but the Commissioner by Notifications dated 28.4.2005 delegated his powers to the said set of officers without any base. Unless rule 6 is amended and the words Assistant Commissioner is accom¬modated, some complications might be there in near future. The, Commissioner has not delegated his powers to the appropriate category of the officers to exercise the powers of registration, provisional assessment, best- judgment, assessment to the unregistered dealers, escapement of assessment, power of forfeiture, calling of returns, levy of interest and in many other aspects. Moreover, delegation of powers to compound offences to all categories of officers seems to be in contravention of the provi¬sions of rule 6. The definition of Assistant Commissioner and Superintendent has special significance in the matter of administration of the VAT Law, as such authorities are one and same in respect of a dealer in a particular area and there can not be any overlapping of territorial jurisdiction.

The department will have no measure of defence, if the exercise of powers without delegation or the powers delegated beyond the scope of rule is challenged.

TAX MACHINERIES
The services of each category of official as well the taxing authorities are counted as indispensable for proper administration of the taxation laws of the State. None is inseparable from others and none is less important.

GRASS ROOT LEVEL
The grass root level officials are the members of the ministerial cadre. Unless the files are designed properly and systematically and moved with action, there may be dislocation in the system. In taxation department, the system of maintenance of records is very unique and very much methodical. The case records are to be maintained in double cover. The outer cover in side is meant for preservation of return at the first inside and preservation of the order of assessment in the last side. In between the first cover the correspondences and Miscellaneous or sheets are to be maintained period wise, year-wise, as the case may be. It is felt incumbent that a summery of the position of the files is maintained in side each case record. The Index Register and the Assessment, Demand and Collection Registers are like the mirror of a dealer and maintains the complete dossier. These records must have the parity with one another so that cross checking may yield a positive result.
The dealing assistants should make it a habit to make scrutiny of the case records from bottom to the top and to put up with action, wherever necessary. Where there is no action the portion is to be closed and tagged. Such scrutiny may ensure proper realization of tax,' if necessary by taking coercive measures. The records are to be maintained in such a way that no sort of entry is lost under any circumstances. }
The maintenance’ of case diary and put up diary are two basic requirements of the concerned deal¬ing assistants. The other records, like maintenance of Bakijai Registers, Register in relation to institu¬tion of court cases, composition of offences, imposition of penalty Register has a dire necessity. The summery at the end of each month is to be drawn up in the index Register, Assessment Demand and collection Register. The Assistant Commissioner or the Superintendents are to check the registers and records and ensure follow up action.

FIELD STAFF
The field staff mainly connotes the Inspectors of Taxes. There main duty is to make survey of the area at least three times in a year. The survey should be made in respect of all the business of the dealers/assesses of the area. None is to be left out. Even a Pan shop or a Saloon should not be omitted. The detailed particulars are to be recorded in the survey register. Such survey register will present the complete picture of business position in the area. The survey should not be confined to the urban areas only, but it should be extended to the rural or semi urban areas, where there is flow of business. Survey Register should be maintained for each Act separately, so that complete picture of the assessees re¬mains visible. Such survey is subject to inspection by the superior authority at least twice in a year.
Enquiry in respect of any assessee and inspection of the business premises, godowns, loaded/un¬loaded trucks form the other parts of duties of the field officers. Such exercise is to be made with a sober approach but with firm stand.
The collection of particulars from different sources with verification of such collected particulars is another vital part of duty of the field officer.

The work of inspection, if necessary under the authority of search warrant and the preparation of the seizure list requires due prudence and proper application of mind. Likewise, the seizure of goods should follow the same footstep. It is to be made imperative that all inspection be recorded in the Register with the outturn thereof.

QUASI-JUDICIAL PROCEEDINGS
The powers and function of the Assistant Commissioners and the Superintendents of Taxes are quasi-judicial,. Registration, requirement to furnish security, administration of assessment proceed¬ings and penal proceedings, all are quasi-judicial ones. The power of the Civil Court has been vested upon the said authorities, who can enforce attendance of any person, administer oath or affirmation in connection with any proceedings, require production of documents and evidences for such purpose, as may be warranted.
The orders in each case must be law, facts and materials based with a self-speaking exposure There should not be any biasness in the contents of the orders, but with a judicious approach and out look. While administering the quasi-judicial proceedings, all facts are to be recorded properly. Though the Act has provided that the orders, instructions and direction of the Commissioner is binding to the officers subordinate to him, but a reservation is maintained, whether such imposition will ensure fair and judicious delivery of judgment. There is possibility of being influenced by any order, direction or instruction in the lawful administration of any quasi-judicial proceedings under the Act.

APPELLATE PROCEEDINGS
The Appellate Authority is a quasi-judicial authority, but it maintains its independent entity. The Commissioner is neither to delegate his powers nor to issue any instruction in administering the quasi-judicial appellate functions under the Act. The Appellate Authority is to dispose of the appeal petition after providing opportunity to the person appealed and the authority against whose order appeal peti¬tion has been filed. The order of the Appellate Authority is not be interfered, by the Commissioner but the Board of Revenue, Assam can entertain an appeal, if filed by the aggrieved party or the Commis¬sioner. The scope for filing writ petition before the High Court on the question of law and justice, however, remains open.

REVISIONAL AUTHORITY
The power of revision of the orders of the Assessing Officer rests with the Commissioner or by the officers not below the rank of the Deputy Commissioner to whom such power is delegated by the Commissioner

SUO MOTO REVISION
The power of suo moto rests with the Commissioner or the persons appointed to assist the Commis¬sioner upto the level of the Deputy Commissioners. Three ingredients are necessary to invoke the powers of suo moto revision, (i) There must be an order (ii) the order must be erroneous and (iii) The order must be prejudicial to the interest of the revenue. Unless, these three ingredients exist, the invo¬cation of power of suo moto revisions is likely to be questioned. The order of suo-moto revision must reflect this vital requirement. When such ingredients are absent in the order, the order is likely to suffer from deficiency.

INVESTIGATING WING
There had been an investigating wing in the taxation department, which was withdrawn in 1983 December without being re-designed or revived so far. Though the Sales Tax Laws of the State em¬powered the State Government to constitute such a wing for investigation and detection of taxes, the same has not been materialized. This has a dire necessity to check, detect and prevent evasion of taxes. An Audit Team has been constituted, which does not have any legal base and such functioning of the Audit team may invite controversy in the long run. That can be regularized by creating an investing wing with assignment of powers, inter-alia, for investigation, audit etc. Audit is a part of investigation and its limitation need not be confined to the case records only.

POWER OF ASSESSMENT TO THE INVESTIGATING TEAM
A discussion has already made that following the doctrine of Separation of Powers, the quasi-judicial powers of assessment and other allied matters are not to be exercised by the investing wing and the said power rests with the assessing wing in the units. This aspect requires a fresh consideration with proper review.

OPERATION OF CHECK POSTS
The operational aspects of the check post suffer from various shortfalls and lacunae. First, there is no Weigh Bridge; second, there is no proper platform to unload the goods with adequate man- power; third, there is no godown to store the goods, when seized. The misuse of Delivery Notes has become a regular phenomenon. It is believed that the check posts maintains the complete dossier of each dealer with registration numbers, commodities dealt in and other allied requisite information. How they can make it possible to evade payment of tax by furnishing false information in respecct of the goods carried by misrepresentation of facts? The particulars transmitted through inter-net may help to adopt follow up action and to apprehend such unscrupulous traders. It is however imperative that for the purpose of administration of the quasi-judicial proceedings or to bring criminal liabilities, the Deliv¬ery Notes must be physically available to the concerned Assessing Officers. Actually, the Check Posts are the competent authorities to arrest such foul play at source and to do away with the odds by initiating coercive measures like detention of vehicle, seizing of goods and forfeiture or disposal thereof.



FIELD INSPECTION
There has been a good deal of deficiency in the matter of field inspectio, namely; at the business premises of the dealers, godowns, ware houses and carriers. The carriers place the pivotal role in indulging the evasion of taxes in collusion with the buyers and the sellers of the goods. Each officer is responsible for proper levy and collection of tax, checking, preventing and arresting evasion of taxes including collection of evaded and realization of outstanding dues in his area. In the past era, the good performances of the officer was a measuring scale to wards counting his efficiency and consideration for posting in suitable commercil areas. The inspection of cinema halls irrespective of any show was a regular phenomenon and it was made compulsory to maintain Register, to submit monthly statements in addition to submission of fornightly diaries.

OFFICE INSPECTION BY THE HIGHER AUTHORITIES
In sixties and earlier, office inspection by the Commissioner at least three times in a year was regular phenomenon. Such inspections were marathon and very tough, but constructive. The inspec¬tion reports were to be typed half margin and preliminary following action reports were to be submit ted within a specified time. With the increase of volumnous works and strengthening the man power, such task was carried out by his juniors in an identical manner. This improved the work culture and accelerated the work efficiency.

AUDIT
The aim and object of audit are to detect the irregularities and to regularise thereof. When there is major lapses, the officers were answeable to that. The existing provisions of law were rectified to cure the defects. Now, the said culture has been changed. The audit encroaches its jurisdiction and makes excess.

ADMINISTRATION OF THE ASSAM VALUE ADDED TAX ACT, 2003
Though the Assam Value Added Tax is a tax on the sales and purchase of the goods, but its aim and object is not identical to the previous ones. It is somewhat unique and technical and designed with a self-wheel-steering drive. The Act has, however, been designed identical to the previous sales tax law, whereby ample ambiguity and misconception prevail. For example, the spirit and intention of the Act was to levy tax on every stage of sales subject to credit of input tax. In the Act, contrary to the aim and object and the preamble, a tax measure for levy at the point of first point sales in respect of 23 items has been incorporated, though the Act has not specifically recorded anything about such departure from the main theme.
The VAT Law is for levy of tax on the sales or purchase of goods, but in the Act some measures of taxes were adopted to levy tax on exempted goods, production, total value of works contract, import of goods, which is beyond the spirit and intention of the Act. This type of payment of composition of tax obviously disrupted the levy of taxes at subsequent sales or inter-State sales making the whole process in the VAT system is anomalous and the process is likely to be foiled and frustrated.
The issue of Tax Invoice andivRetail Invoice are compulsory in the VAT regime to ensure proper accounting for and proper payment of tax thereof, but this has neither been complied with or not enforced for which trie leakage of revenue has become obvious.
The acceleration of activities in the field may discourage any such odds.

ENTRY TAX LAW AND THE LUXURY TAX LAW
The administration of these two Laws are to be carried on under the VAT Law of Assam, but the aim and object of levy of tax under these Act are not identical tq VAT Law. It will be in the fitness of things to make provisions in the Act for independent process of administration to avoid any complications.

TAX LAW ON SPECIFIED LANDS
With a view to ensure correct and accurate levy of tax, the following important aspects requires to be looked into:
(i) There should be a survey in all tea gardens irrespective of big and smalls.
(ii) The accuracy of production of green tea leaves is to be verified with the volume of production of black tea, keeping in view the ratio 4.5 :1.
(iii) There should be cross verification of green tea production statement, furnished in the sales tax department with the statement furnished in the Central Excise Department.

ELECTRICITY DUTY
The Central Sales Tax Act, 1956 has restricted the levy of tax in respect of the energy supplied outside the State, but contrary to this, the provisions for levy of tax on such supply, has been incorpo¬rated in the Assam Electricity Duty Act, 1963 in October, 1984.

AMUSEMENT AND BETTING TAX ACT
The Assam Amusement and Betting Tax Act, 1939 is to be renovated and re-designed to make way for assessment, specification of violation of the provisions of the Act including evasion of taxes and penal measures thereof.

TAX ON PRODESSIONS,TRADES. CALLINGS AND EMPLOYMENTS
Actually, the above measure of tax is hot a tax on income, but it is a tax on Professions, trades, callings and employments. The income derived out of the same is counted as a measuring scale for the purpose of levy of tax. But with the amendment of the Act, 1992, there was a crack in the system and this required to be restored.

WORKS CONTRACT AND LEASE:: WHETHER VAT COMMODITIES ?

VAT is a multiple system of tax leviable at every stage of sales of goods made by a dealer, subject to credit of input tax paid at the time of previous purchase of the goods. 'Input tax' and 'Output tax' are one and the same thing. The tax paid by the purchaser to the seller is input tax, while the tax realised by the seller from the purchaser and paid to the Govt. is output tax. A controversy is prevalent as to whether 'Works Contract and Lease' are VAT Commodities and the taxability on such item come under the purview of VAT tax-net.
Following a number of litigations and the Apex Court decisions against levy
of the tax on Works Contract and Lease, the Constitution of India was amended in 1982 and 'the transfer of property in goods involved in 'Works Contract' and 'the transfer of right to use any good without transfer of ownership' have been brought under the purview of the definition of 'Sales of goods'. The problem thus got a halt and tax on such transfer of property in goods and transfer of right of goods was well being levied under the Assam General Sales Tax Act, 1993. With the introduction of the Assam Value Added Tax Act, 2003, the basic principle of levy of tax, which has been discussed above, the levy of tax 'Works Contract' and 'Lease' has become irrelevant in as much as the 'Works Contract and Lease' maintain their independent entity and separate bearing. The multiple system of sales clockwise or stage wise in such deal become irrelevant. The VAT Act mainly dwelt in the basic principle of levy of tax on every goods at every stage of sale. It has not accommodated the principle of levy of tax on 'the transfer of property in goods' involved in 'Works Contract' and the 'transfer of right to use any goods involved in Lease. There ought to have a provision dispensing with the main theme of VAT so as to accommodate this extra-ingredients in the tax-net of Assam. The scope for levy of tax under the VAT Act has been specified in the Schedule attached to the Act along with the category of taxable goods not specified in other Schedules of the Act with the broad term 'Works Contract' and 'Lease'. The basic principle of levy of tax has not been accommodated. 'Works Contract' and 'Lease' are not the goods and the concept of levy of tax on 'Works Contract' and 'Lease' seem to be a deviation from the main spirit and intention of levy of tax on the sales of goods in the VAT ideology.
Assuming, but not admitting that the legislatures, while incorporating such measure of tax on 'Works Contract' and 'Lease', intending to levy tax on the transfer of property in goods involved in Works Contract and on the transfer of right to use such goods involved in lease, the rates of tax specified in Schedule at 12.5 paise in the rupee, is not at par with the rate of commodity-wise tax, specified in the other Schedules of the Act. For instance, the rate of tax on the sales of declared goods is always 4 paise in the rupee and it can not exceed the rate declared by the Govt. of India by enactment of the Central Sales Act, 1996 under the authority of the Constitution of India. Pipes of all varieties, pumps, tractors, ships vessels and many other allied articles, pertaining to 'Works Contracts' and 'Lease' do not have the rate of tax beyond 4 paise in the rupee. Naturally, there has been strong clash between the rate of the tax specified at 12.5 paise involved in 'Works Contract' and 'Lease' and the rate of tax of goods specified in the Schedules of the same VAT Act. There can not be double rate of tax on the same commodity for the purpose of 'Plain Sale' or 'Sale in the course of Works Contract' as well as the alleged sales on 'Lease'. Obviously, discrimination has been well maintained in tax-net scenario under the VAT Act of Assam.
The VAT law in Assam provided the measure of Composition of tax on works contract to be exercised by the works contractors at their own option in dispensing with the requirements of making payment of tax on the sales element under the VAT Act. The rate of tax payable as Composition of tax under such Scheme has been specified at 4 paise in the rupee on the gross value of 'Works Contract'. Apparently, this is abusive of the principle of levy of tax, as enumerated in the Constitution read with the definition of VAT Act.
A transfer of property in goods involved hi 'Works Contract' is liable to be taxed. A tax is leviable on the taxable commodities and not on the exempted ones. Moreover, labour charges, transport charges and other allied charges involved on the works contract can not be brought under the purview of taxability.

Transfer of right to use any goods in connection with lease is not a permanent sale of good. It is casual deal without maintaining any continuity. A lease deal on the same commodity may be frequent on the expiry of the specified period of time, but it may not be on chain system. This has provided scope for levy of tax on the same item leased without any scope for any credit of input tax. The legislatures have not specified the items to be taxed on lease and the levy of tax on lease has been made wide and open. It may naturally have an adverse effect to the lessesors and lessee when to be taxed on small deals of lease. No 'taxable quantum' has also been specified on lease deals. A confusion always prevail over the question of 'Hire' and 'Lease', as it has not been well analysed in the system. In absence of that creation of confusion to the dealer and exercise of powers by the taxing authority arbitrarily can not be ruled out in the matter.
Our above projection explaining the propriety of taxability in 'Works Contract' and 'Lease' ought not to have incorporated in the VAT Act of Assam, which maintain a separate aim and object with separate way of functioning. On the other hand, the levy of tax on transfer of property in goods involved Works Contract and transfer of right to use good on lease can not be given a good bye, as a substantial amount of tax revenue pours into the state coffer annually.
A separate enactment of law is considered to be imperative for the sake of better tax administration vis-a-vis proper augmentation of revenue of the State without any scope of disputes or controversy.

TERRORISM BY MAOIST

The main theme of the Constitution of India is that it is a Sovereign, Socialistic, Secular, Democratic Republic. It provided each citizen of India the right to form association, to ensure freedom of speech and expression. So, every citizen can exercise such right. The Constitutional guarantee, however, did not encourage any citizen to be violation and to go ahead with terrorism. It will be an obvious act of abuse of fundamental right, if the path of violation or terrorism is adopted by any association or organization.
The birth of Maoist in the South Eastern part of India is not very old, but their activities in the path of terrorism are gaining the momentum since recent times. The Maoist moves are with the ideology of Mao-Tse- Tung, the revolutionary Communist leader of China, who by his ideology of Socialism brought a drastic change in the Republic of China during the period after his birth in 1889 to his end in 1976.
Though Indian Constitution ensured a Socialist pattern in the Country’s Democratic set-up, in actual practice, the trend of Capitalism is getting priority. In the areas, where the Maoists are fed up with the trend of capitalism, they have raised their heads against such odds. Actually, terrorism is not the proper way for any of such solution, but the meaningful and peaceful dialogue may make end of the burning or chronic problems.
Maoists, who are moving with the ideology of Mao Tse Tung, must not forget that they are out and out Indians and fully under the shadow of Indian Democracy vis-avis the Indian Constitution. They should not forget that China’s attitude is not very much friendly with India since last 48 years. The trend hostility is reflected in everyway of their activities.
So, they must keep in mind that they are Indians first and in following any ideology of others they should equally be up and doing in maintaining the unity and integrity of the Indian Sub-Continent.

HASTY DECISIONS MAY INVITE MORE COMPLICATION

The Indian sub-continent is on the point of a multifaceted volcano having possibility of eruption at any moment, which may result in unforeseen and unhealthy situation. The chronic burning problems of the country are already on the heels to create unrest and instability. An eruption may take place at any time, if the continued chronic problems are not handled with prudence and farsightedness. A trend of eventuality seems to be insight and the volcano in partial slumber, may awake up and erupt at any time. Immature but hasty decision may, no doubt, add fuels to the inner blazed flames of volcano to create catastrophe. The problems of the sub-continent at this stage are of manifolds. The unrest activities of the multifarious groups of ultras in different parts of the country are at present gaining the momentum. The trend of international threat of aggression by the nations, hostile to India, namely; Pakisthan and China already posed to be a cause of great agony and tension. The silent aggression by a section of illegal immigrants from the adjoining territory of Bangladesh and spread over the eastern sector of the Indian Territory more particularly in Assam with some obvious critical and vested aim in mind, has naturally posed to be a great threat to the indigenous people of the area. The said section of people are politically so alert and to whom the shower of blessings from the political level pour so heavily with the theme ‘safe guard the interest of the minority community’ that, it can be construed that it is intended to protect the ‘Vote Banks’. These immigrants use to roam in a separate world with some distinctive aims and objects. Though presently, Bangladesh maintains a good relationship with India under the dynamic stewardship of Shiekh Hasina with the ideology of her late lamented father Banga Bandhu Shiekh Mujibar Rahman, the mischief already caused can not be mended or repaired at this stage. The Bangladesh Government seems not keen to adopt the go back policy of such illegal immigrants from India; the counter part nation (India) also thinks twice to give a good bye and to evacuate the precious vote bank areas. These immigrants are eager to create an atmosphere detrimental to the existence and stability of the indigenous people of Northern States The regional indigenous people irrespective of any caste and creed are gradually forced to be made cipher on account of their deplorable pecuniary condition lack of diplomacy. None can say what their planned strategy is. Whether it is a prelude to expand the territorial base or to gain supremacy in the region. The problems, as cropped up, could have been averted, if the Government of India would have deported the unauthorized and illegal entrants, taking temporary shelter in the Indian soil to get rid of the violent Pakisthan militants, immediately after the liberation of Bangladesh. The people of the eastern sector of the sub-continent are now in doldrums for such imprudent act of the centre. A section of the indigenous people is after the power mongering exercises. The greed of power has the consequential aim to amass the black money. This is either for autonomy of the region or for separate statehood. The expenditure incurred is nominal, compared to the fund provision and the balance is normally pocketed. A section of the people is very much adamant over the question of independence and sovereignty. Presently, the ultra forces, like United Liberation Front of Assam ( ULFA) are adamant to acquire the independence of Assam with the banner of sovereignty. A section of Naga and Bodo militants are maintaining the same moto. There is dearth of knowledge on the concept of independence or sovereignty, as it is believed. The sentiment of cessation from the national net work may crop up, when the mass people of any region feel neglected by the apex Government, the prosperity of the same is legging behind or the political justice is not awarded to the people in representation and share of power in the apex Government. The people of Bangladesh experienced such odds and they initiated revolution within the soil, which ultimately succeeded. Of course India played a pivotal role in such exercise. Such an odd is not visible in Assam. Though initially, there was a sloth in the process of developmental activities, priority has been given after the Chinese aggression more particularly after six years of foreigners’ drive movement. The developmental works are being carried on in a phase manner on priority basis. This played a notable role to do away with the profound grievances of the people. The question of independence is not designed with any logical, legal and practical approaches and is, in fact, superfluous. The independence of Assam is not a matter of joke, as it is surrounded by other eight adjoining States and the buffer State Bhutan between India and China. Moreover, the ability and skillfulness of the independent seekers are to be reckoned. The screen of the Television and the circulated news media well ventilate what the role of 14 elected members in the Lok Sabha and 7 elected members in the Rajya Sabha. They are mostly the silent spectator within the four walls of the Houses of Parliament in the national and international debates. What sorts of qualitative outturn can be expected, if Assam is awarded independence? The ultras know how to kill innocent people, extract money by way of kidnapping and threatening. They lack proper diplomacy and ideology; otherwise they would not have taken shelter in Bangladesh against whom their primary modus-operandi was there. They have no idea or capability to run the administration. A chaos and conflict will naturally take place and the foreign power will take full advantage to over throw the Government and capture power. One must recall the eventuality at the end of weak administration in the Ahom regime of early 18th century, which helped the British traders to expand the trade base and to install power. The main leadership of ULFA have been apprehended and put behind the bar, but they are still vociferous over the question of independence of Assam. They are advocating for dialogue on the vital question of sovereignty or to arrange referendum to seek mass mandate over the question of liberation of Assam. Such referendum can not be expected to be free and fair. The mandate at gun point will get upper hand. The people of Assam irrespective of any class, creed and cadre are already the worst victims in the reign of terror for last 30 years. None has the moral support for the so called independence and sovereignty. The most tough question of this day is creation of more Statehood to provide political berth and economic soundness to a section of the aspirants. The Indian sub-continent already have twenty eight numbers of part States and seven numbers of Union territories. The part States have been provided with adequate power of autonomy in the State within the frame work of the Constitution of India. The Constitution vested some reserved -indispensible power to the Centre to ensure unity and integrity of the country. It has, of late, been noticed that there have been tremendous moves at different states for bifurcation of the existing States and creation of separate States. Telengana, Gokhaland, Bidarva,Harit Pradesh, Bunderkhand etc. are raising their demands for creation of new States. In Assam Bodo, Karbi, Dimacha, Garo are making agitation over the question of creation of new States. The Koch Rajbangshi people of undivided Goalpara district and five or six districts of West Bengal are demanding separate State under the banner of Kamatapur. As published in the news media, there is a base of such demand following an agreement of merger of Coochbehar territory with India, signed by the then King Jagadipendra Narayan Bhup Bahadur and the Government of India, which has been placed before the Hon’ble Supreme Court of India. It is not unlikely that the people of muslim majority areas may sometime come up with such demands in future. The last bifurcation vis-à-vis creation of new States took place on 15.11.2000. Ignoring all other instant claims, the Government of India recently decided to create a new State ‘Telengana’ in bifurcation of the State ‘Andhra Pradesh’. This apparently raised furor amongst the people of Andhra Pradesh and in protest against such a decision of the Government of India, numbers of cabinet ministers, elected representatives resigned by creating a political crisis. Not only that, voices of protests Bundhs episode etc. has already evoked from other parts by the aspirant for statehood. An unrest situation may as well crop over the question of haphazard decision. The creation of new State is a theoretical aspect. The practical aspect must be looked into. The resource potentiality, resource generation and resource mobility are the primary factor for creation of new Statehood. When a State is created, all sorts of requisite infrastructure must be available. In no case, such new State should be a burden to the centre, but a self dependent. In our view, when there were numbers of demands, Centre’s decision to create unilaterally the State of Telengana can not be termed as an act of maturity and prudence.

AN END TO BANDH CULTURE ?

A Division Bench of the Gauhati High Court, consisting of the Chief Justice Justy Chalemeswar and Justice A.C.Upadhaya recently delivered a historical judgment declaring the frequent bundh culture in the State of Assam as illegal. The judgment followed on the Public Interest Litigation petition fled by a retired police officer and Ex-Member of Parliament Ataur Rahman, a profound social worker Suchibrata Roychoudhury (now dead) and the renowned journalist Mrinal Hazarika seeking a verdict of the highest legal forum of the State covering the north east states of the country, in as much as such bandh calls are disrupting the normal way of life. The labour classes of people can not earn their daily wages, which continues some time for days together. Naturally, such unfortunatepeople have to remain in hunger for deficiency of money power for purchase of food. The school and college students can not attend their classes and there is untold loss in the educational spheres. The office goers from outskirt and distant areas, can not attend offices and the functioning of the offices remains paralyzed. Even, if some office goers take attempt to attend the offices; they have to come across various threats including for life. The bundh culture is spreading so heavily and rapidly that it has obviously become a curse in the civilized society. The bundh callers fail to realize and appreciate the consequential ill effect of the bundh in social life. They make misuse of the constitutional right, namely, right to speech and expression or right to association by extending it to bundh culture. The bundh culture is intended to reflect the act of protest, which is considered to be unwarranted and odd designed. In such exercise, there is dearth of knowledge towards evaluation on the concept of democracy as well as the republican thought. The bundh culture got priority at the time of foreigners’ movement in Assam in 1979 at the behest of the All Assam Students Union, associated by other ingredient parties and organizations under the banner of the ‘Ganasangram Samitee’. Even they took the self-designed administrative power to declare “Janata Curfew´ to enforce such bandh. They disassociated themselves from participating in the National programmes like Independence day, Republic day and forced the mass people to refrain from participation in such holy functions of the auspicious days. What this people used to do after coming to the power is indeed a shameful part of the history. This, in fact, has been made precedence and the agitators and the bandh callers of various groups or organizations are following the suit. The United Liberation front of Assam, a part acts of other brutal and unlawful activities, simultaneously uses to declare bundh and the innocent people have no other alternative, but to abide by such unlawful- designed calls. When the ‘ Assam Bundh’ and ‘Bharat Bandh’ calls are operative, the ’district bandh’ and ‘regional bandh’ are as well parallely gaining the momentum. There are various types of demands like providing autonomy, creating Statehood and even acquiring independence and sovereignty. That means, all are hankering after power to establish themselves in the power scenario. There is least thought for the welfare and upliftment of the common people, but to install in power- no matter whether the unity and integrity of the country get any set back. This bandh culture has spread so speciously that there no surety to reach the destination of perambulation within the time bound programme. The time factor is now irrelevant, but the bandh factor has to be reckoned in every step and given due cognizance. These unhealthy and unhygienic bandh culture; on the other hand, have been prominently cubing the mobilization of resources and the State economy has been put to a doldrums. The road-bandh being an inherent and integral part of the bandh culture, there is unhealthy and irritating blockade of transportation of goods and passengers. In fact, Assam is solely dependent of the essential commodities and other important commodities from places out side the State. The movement of goods to the other six sister States takes place through the corridor of Assam and naturally the economic activities of the said States get jeopardized. When the road blockade takes places, there is dearth of import with consequential shortfall of supplies. It is well known that price hike irrespective of any commodities have been spreading so widely like wild fire that there is unbearable murmuring of the incapable purchasers seeking solution. The benign Governments at the State and centre are keeping mum and practically remained cipher. We hail the verdict of the High Court, which provided relief to the mass people of the State. The verdict of the court will not , however, be enough, but there must be law to enforce the verdict incorporated with penal measures. The ball is now at the court of the Government. If the Government thinks seriously and sincerely for the welfare and prosperity of the people, the bandh episode will have to seek adieu soon and the people can confidently hope that the end will be knocking at the door.

TAX ON INCOME AND AGRICULTURAL INCOME

‘Tax’ means ‘the money that must be paid to the State; charged as a proportion of personal income and business profits or added to cost of some goods and services’ ‘ Income’ means ‘a money received during a certain period for work or from investment.’ “Agriculture’, on the other hand, means ‘a science or practice of farming.’ ‘Tax on income’ is thus money to be paid on the profits earned for works or investment, while; ‘Tax on agricultural income’ is ‘the money to be paid on profit earned on the practice of farming.’ ‘Tax on income’ is a subject, administered by the Government of India (Central Govt.) through the machineries at its disposal. Article 246(1) of the Constitution of India (Constitution) empowered Parliament to make enactment of laws on the subjects, specified in Seventh Schedule- List I (Union List). ‘Tax on income other than agricultural income’, as occurred in entry 82 of the said Schedule is thus the subject of levy of tax by the Central Govt. In fact, the measure of tax on income in India was introduced in British Parliament long back in 1860 to bear the economic burden on account of armed revolution of the First War of Independence against the British regime. The reasonableness of such measure of income tax adopted, were assigned as, it is a (i) canon of ability for paying such tax; (ii) canon of certainty; (iii) canon of convenience and (iv)canon of economy. There was, however, no such tax from 1865-67 on account of public murmuring. The Income Tax Act, 1886 was brought out to build- up licence tax. The Income Tax Act, 1922 continued to be operative in post independent period too. After the Constitution took birth on January, 26th, 1950, the said Act continued remained in force with the safe guard provided under the banner of Article 277 (Savings) of the Constitution. The Income Tax Act was remodeled and it was passed in the House of Parliament in September, 1961 and the Indian Income Tax Act, 1961 (Income Act) thus came into effect. It is, in fact, a tax only on income, profits or gains and not on the capital, whether original, substituted or increased. The salient features are, therefore, - (i) income tax is only a charge on income and not the capital; (ii) the method of charging tax on income and capital gains is different; (iii) in computing the taxable income of a business, profession or vocation, only the revenue expenditure and not the capital expenditure is deducted from the trading profits. ‘Tax on agricultural income, is a subject, administered by the State Governments through the tax machineries of the State. In 1925 the Indian Taxation Enquiry Commission opined the justification of creating a measure of tax on agricultural income, but the same was not readily materialized. The Government of India Act, 1935 as well incorporated entry 41 in the Seventh Schedule of Provincial Legislative List to facilitate introduction of tax measure on agricultural income. The measure of tax on agricultural income was thus introduced and the Assam Agricultural Income Tax Act, 1939 (Agricultural Act) was enacted by the then provincial Legislatures of Assam operative from 1.4.1939. After India achieved Republican character in 1950, entry 46 in the Seventh Schedule of the Constitution provided power to the Legislatures of the State to enact law on the ‘Taxes on agricultural income tax’. The 1939 Act, however, continued to be operative by virtue of savings provisions in Article 277 of the Constitution. It is worthy to mention that within this long spell of 70 years, a number of amendments of the Act took place following administrative needs and in consideration of public interest. ‘Tax on income’, as defined in clause (29) of Article 366 of the Constitution ‘includes a tax on the nature of an excess profits tax’, ‘ Agricultural income’ as defined in clause (i) of the said Article means ‘agricultural income, as defined for the purpose of the enactments relating to Indian income tax.’ The Constitution thus maintained silence to provide independent and categorical definition on the term ‘agricultural income’ and it is kept dependent on the Income Act. The definition in the Income Act incorporated that ‘the income that is derived from the land of agriculture’. The tax on income and the tax on agricultural income are levied taking into consideration the income derived in the previous year subject to deduction of the amount, admissible under the relevant Acts out of the total quantum of income derived. Though the main theme of the agricultural Act is that, it is a tax on agricultural income, but some deviation has been made in the matter of determination of the quantum of the agricultural income of tea. Income derived from tea is to be bifurcated as income on agricultural activities and on trade activities. The ratio maintained thereof is 60 : 40- that is, 60 percent on agricultural income and 40 percent on trade income. This principle is exclusively maintained in case of tea only and not on other production like paddy, pulses, wheat, sugar cane etc. where also simultaneously question of agriculture and trade are involved. There are good numbers of tea gardens, which produce green tea leaves and effect sales to the black tea manufacturing industries. It is not exactly known how they are roped in the tax net for purpose of levy of tax on income and agricultural income in accordance with the designed ratio. The tax on land, with the measuring scale of production of green tea leaves in smaller tea gardens, are not levied directly, but on the sales made to the manufacturing tea gardens, which purchase for production of black tea. The measures, adopted seem to be fallacious. The imposed restriction on the levy of 100% tax of tea obviously created an acute set-back in the revenue generation exercise of the State. In fact, tea industry is one of the few limited industries of Assam. This aspect of law requires a rethinking for rationalizing the fiscal disequilibrium at par with the income of the other agricultural commodities. The measure of tax, as introduced by the erstwhile provincial legislature of Assam and continued for long 70 years provided ample power to the Agricultural income tax authorities to administer the Act, that is, levy of tax and other allied matters. Over the head of such ardent vested quasi-judicial power, the exclusive power of determination of the quantum of total income and bifurcation thereof has been vested upon the income tax authority, causing a double standard in the power exercise scenario. It, no doubt, amounted to be a centralization of power the identical State law under the statute of law by way of encroachment and seems to be irrational and pre-judicious. The Agricultural Income Tax Rules laid down some discretionary power to agricultural authority for scrutiny and examination on such determination and bifurcation in such cases, when circumstances warranted so. The Supreme Court of India, of late, quashed the validity of the said State rule. This has the consequential effect that the State tax authorities are to remain cipher and to act like rubber stamps on the unitary decision of the central authorities. The quasi-judicial aspect in the agricultural Act thus practically intended to seek a good bye. The Head Offices of limited numbers of industries, installed in Assam, like tea industries, oil industries, coal industries etc. are mostly located at places out side the State of Assam. The taxes on income are generally deposited by such industrial entrepreneurs out side Assam. The concerned States in which such tax revenue deposits are made use to get share of income tax, as envisaged in Article 270(2) of the Constitution. Assam is thus deprived of such benefit even though the base of production, manufacturing and trade activities is totally within the parameter of Assam. The sensitive sons of the soil of Assam, urge upon the Government of Assam to consider this revenue generation issue and raise this vital pertinent question before the central Govt. so that an amendment of the Constitution is made to ensure augmentation of revenue to this economically backward State.

TEA GARDEN HEAD OFFICES SHIFTING TO ASSAM IS IMPERATIVE

The Assam Legislative Assembly adopted an unanimous resolution on 2nd April, 2002 demanding that the big tea companies, having tea gardens in Assam, are to shift their Head Quarters to Assam so that the local youths can get preference in appointment and other ancillary facilities. For that purpose, it decided to send a team of State Legislatures led by the Speaker of the Assembly to put pressure on the Government of India for mobilization of the process. It is not known what was the ultimate out-turn, but there is reason to believe that that it was simply a castle in the air.
There are about 800 tea gardens in Assam having there industrial base side by side. The big tea companies have their Head Offices at Kolkata, will be not less than 90% of such industrial based gardens, existent in Assam. The functioning of the gardens are carried on by remote control devices from Kolkata and the local management in Assam are kept in the dark about the modus-operandi in relation to the sales and purchases exercise effected from the gardens, employment avenue and other allied matters. They are to remain practically cipher in all respects. There can not question of ‘what’ any ‘why’. In true sense, the Head offices owe little allegiance to the State, bother a little for the development and welfare of the people of Assam, They use and utilize the soil of Assam, as the grazing grounds of the company for production and manufacture of tea keeping the aim in view to enrich and enlarge their assets and fiscal resources. Several moves were already made requiring the tea companies to shift their Head Quarters from Kolkata to Assam, but it reached to the deaf ears without any positive and fruitful reactions.
The tea lobby, as it appears, is very much powerful in Assam. They play the pivotal role in the elections scenario vis-a-vis installation of the party Governments to power and even dare to make imposition over the functioning of the Government. The Government in power, it seems from experience, can not over rule their imposed counsels or to be tough to them thereby to invite any displeasure. Neither the Government of Assam nor the Government of India is keen to force or make any imposition to the tea companies to shift the Head offices to Assam. This, they feel, may be abusive in as much as it would make way to curb the fundamental rights, guaranteed by the Constitution of India. The only way, as we believe, is that there should be effective dialogue, assertive pressures and keen pursuance by the mass people of Assam to yield any productive yields.
Avenue of employment :The Head offices of the tea companies formulate the recruitment policy of the respective gardens and make proper implementation of the same through the machineries installed in Assam. In such exercise, the youths of Assam are mostly deprived of any executive, technical or other important assignments in the tea gardens. There is no proper and proportionate representation of the youths of Assam in the Head offices of the tea companies, which are being run at the cost of earnings, derived from the soil of Assam. In that way, they project their indifference and callousness and obviously fail to discharge their obligations not only to the State but to the mass people of Assam. The acute unemployment problems could have been minimized to a great extent had the tea companies extended their healthy and sympathetic gesture to do away with the same.
Purchases of goods :The tea gardens of Assam are not empowered to purchase any goods in Assam. The Head offices make it a prevalent practice to purchase the motor vehicles, machinery, plants, equipment, production and packing materials and other requisites at Kolkata or some other places to the best of their best choice. It was pointed out in the Legislative Assembly at the relevant time that out of such 256 items purchased from places out side the State of Assam, the purchase value of tea bags alone came to Rs. 32 crore in a year. The way of such divergent trade activities adopted, is, no doubt, quite detrimental to the interest of the usual trade practice vis-à-vis healthy growth of economy in the form of revenue in Assam.
Entry tax :A measure of tax on the entry of goods was introduced in Assam by way of enactment of the Assam Entry Tax Act, 2001.The said Act was subsequently repealed consequent upon some legal controversies and a fresh law was enacted from 1st June, 2008. If such items embodied in the entry tax net of Assam, are imported on purchase for use or consumption by the tea gardens, the revenue generation is likely to be ensured and the heavy drainage of revenue in the name of purchase in other State is expected to be averted. It is felt that the tea companies will ultimately prefer to exercise a reverse course of action vis-a vis to purchase such goods, as are available in Assam to make wide flow of revenue to the State Coffer. Of course, the goods, which can not be had in Assam are to be purchased from places out side Assam and there is no other alternative to that.
The tea garden owners are extracting money from Assam soil and making investments of the heavy profit amount, earned thereof, in places out side the State. A dearth of interest is always in sight in their minds for the development and prosperity of Assam. In economic spheres too, the State fails to get the legitimate revenue on this pretext or that.
It is high time that the Government is to assert its stand and impress upon the tea gardens, augmenting the resources from the soil of Assam to be aware of their obligation and allegiance for the development of Assam, which is still maintaining acute backwardness, compared to others States in the Indian sub-continent. The voice of the people will equally be a basic way of action in compelling such tea companies to change such modus-operandi in the long run.

(Mrinal Kanti Chakrabartty)
“Rudrs Bhawan”R.G. Barua Road, Lakhimipath
Guwahati-24

MOUNTING PRICE HIKE CAUSING FISCAL INDISCIPLINE AND ECONOMIC INSTABILITY

‘Limited income’ but ‘unlimited expenditure’ has the consequential effect of unhealthy economic imbalance in the day to day way of life. Apparently, a vacuum has been created in the smooth life standard of the people. Assam, a part State of the Indian sub-continent has extensive agricultural lands, mighty rivers with their un-reckonable tributaries, huge numbers of beels, ponds and water pools, but, in fact, the austerity of life style can not be maintained out the agricultural products and fish population derived out of lands and water pools. The people have, therefore, to depend largely on the imported food staff and fishes from places out side the State. The raw materials like jute, superi, hides and skins can not be utilized in converting into finished products due to the dearth of industrial base. The raw materials have thus to be disposed of at a cheaper value paving way for ardent and unlimited fiscal gain by inter- State industrial - giants and the resourceful business magnets. The State of Assam is deprived of the legitimate pecuniary benefits. The reasons of poor agricultural outturn out of the lands are of many folds. The methods of cultivation applied in Assam, are very old and unscientific ones. Application of modern devices of cultivation by tractors, power tillers and of like is very rare. The manures used in the field by traditional burning of tree-leaves, paddy roots or application of cow dung are the cultivators’ normal habits. The chemical fertilizers are applied by a class of well to do people and the same are almost out of the reach of the common cultivators. The irrigation system is not upto the mark. Draughts play a vulnerable role in damaging the products. The century- backs ‘harrows and ploughs’ are the main agriculture implements in Assam. In other States, the application of modern implements ensures at least four types of cultivation in a year with yields of substantial products, while in Assam, more than two crops products in a year can not be expected. The products are also in most cases divisible amongst the land lords and the cultivators and such shared production becomes insufficient. The total area of Assam is 78,438 square kilometer. The cultivating land will be hardly 1/5th of the total area, as the hilly areas rivers and other water pools, townships cover a plenty part of the total area. The population of the State as per 2001 census is 2,66, 55,526 nos. The areas, covered for production of different types of crops with the quantities of production are, as below : *(a) Areas of production 2004-05 2005-06 +(b) Quantities of production (a) Rice (different types) 2383000 hectare 2420000 hectare (b) “ 3470000 Tonnes 3552000 Tonnes (a) Cereals “ 2474000 “ 2497000 “ (b) “ 3556000 ‘ 3624000 “ (a)Food crops “ 2582000 “ 2597000 “ (b) “ 3617000 “ 3680000 “ (a) Oil seeds 287000 “ 254000 “ (b) “ 147000 “ 110000 “ (a) Fibres 64000 “ 63000 “ (b) “ 436000 “ 605000 “ (a) Fruits & Vegetables 164000 “ 154000 “ (b) “ 1608000 “ 1314000 “ (a) Other misc. crops 131000 “ 129000 “ + Cocoa nuts, as included in oil seeds are in term of million nuts, cotton, mesta, as included in term fibres are 170/180 kg in each bale, arecanut as included in misc. crops is in term of cured nuts and sugar cane is in term of cane. The current figures being mot readily available there will not be much variation of the figures exhibited above. The goods so produced, can not normally meet the growing requirements of the ever increased population phenomena and hence the import of the commodities becomes imperative. Notwithstanding that the fishes of different types have the roaming beds in the rivers and tributaries, the number and area of fisheries in Assam in 2006-07 were, as follow:- Registered Beel - Numbers 430 Area 602215 Hectares Ponds and tanks “ 278755 “ 38767 “ Unregistered Beel “ 766 “ 40600 “ Swamp and waste land “ 9852 “ 39240 “ Registered river fisheries 177 “ - The production of Fish seed in 2006-07 is 2062.61 (million numbers) and that those of fishes were 1,81,479 tones. Obviously, therefore, such commodities can not cater to the growing needs of the people. The question of import has thus gained the momentum. In such import exercise, price element leaps no bound. The high cost at source, the cost of transportation, the whims of the administrative raj, the touts’ foul play are the main factors for increase of heavy price. Besides, the question of the margin of profit at the different levels makes way for such mounting price rise, which some times reach four times of the price at the source. The price of the essential commodities has gone to such a high degree that it is practically beyond the reach of the common people. The rich classes of people can effort easily, the poor classes of people survive some how.They have necessity, but no aspiration. But the acute victims are the middle classes of people, who can not accommodate in any way. The fish price is going to be higher and higher. Even the small sizes of fishes cost Rs. 400.00 per kg. Assam produces abundant vegetables, but the prices of the same have simultaneously gone high. There is margin of four times growth of price in urban areas, compared to the rural areas. The Government of Assam has not finally given effect to the revised pay scale to the employees. So, naturally, the employees can not stand before such heavy price rise. What is generally done is that they take resort to acquire black money to over come the challenge of grave economic crisis. So, the fiscal indiscipline and a financial instability has gained the momentum. It is high time that Government should awake up from deep slumber and take remedial measure to restore stability.

(Mrinal Kanti Chakrabartty)
“Rudrs Bhawan”R.G. Barua Road,
Guwahati-24