LAWS(PAT)-2010-2-18

EUREKA FORBESLTD Vs. STATE OF BIHAR

Decided On February 26, 2010
EUREKA FORBES LTD, PATNA Appellant
V/S
STATE OF BIHAR Respondents

JUDGEMENT

(1.) This writ petition seeks the following reliefs:

(2.) A brief statement of facts essential for effective adjudication of the issues involved in this matter may be indicated. The petitioner is a public limited company engaged in marketing, distribution, and sales of a certain product known as Vacuum Cleaner. We are not concerned with its other items. The present writ petition is with respect to the assessment years 1990-91, 1991 -92, 1992-93, and 1993-94. It is evident that these periods were prior to the date of bifurcation of the erstwhile State of Bihar in terms of the Bihar Reorganisation Act, 2000. The petitioner had been submitting returns at various places in the undivided State of Bihar including Jamshedpur and Patna. It had submitted returns for the said four periods on the footing that it was liable to be taxed at the rate of 8% under the provisions of the Bihar Finance Act 1981 (hereinafter referred to as the "Act"). The learned Assessing Officer did not agree with the petitioner and instead assessed the petitioner Company to tax at the rate of 12%, treating the vacuum cleaner to be 'electrical goods' within the meaning of Entry No. 81 of the Sales Tax Notification No. 1026/77-14541, dated 26.12.1977, issued under Section 12 of the Act. In terms of the notification, tax was leviable at the rate of 11% up to 31.3.1982, and was raised to 12 % with effect from 1.4.1982. It is evident that the four periods in question are after 1.4.1982. The four appeals preferred by the petitioner for separate periods were dismissed. These were followed by revision applications before the Commercial Taxes Tribunal, Bihar, Patna, which have been dismissed by a common judgment dated 27.4.2004 (Annexure-3), passed in Revision Case Nos. PT-621/97, PT-334/98, PT-335/98 and PT-586/99 (Eureka Forbes Limited v. State of Bihar). Hence this joint writ petition for the four periods in question, whereby the petitioner challenges the validity of the impugned judgment by which the petitioner is sought to be taxed at the rate of 12% for the four periods in question, instead of 8 %.

(3.) The State Government issued Notification No. S.O. 134, dated 27.7.2000 (Annexure-6), which was published in the Bihar Gazette (Extraordinary), dated 27.7.2000, whereby a separate and distinct entry has been inserted as 'Vacuum Cleaner' which shall be taxed at the rate of 12%. The concluding portion of the notification states that "this Notification shall come into force with effect from the date of the publication in the Official Gazette".