RANCHI GYMKHANA CLUB Vs. STATE OF BIHAR

JUDGEMENT

(1.) PETITIONER No. 1 is a society registered under the Societies Registration Act, 1860 in the name and style of, "Ranchi Gymkhana Club"; petitioner No. 2 one of the members of the society, describes himself as its Chief Administrator. The society provides certain facilities and means of recreation and supplies food, refreshments and beverages to the different categories of its members in the manner normally associated with a members' club.

(2.) IN this writ petition the two petitioners seek a declaration that the society is not a dealer within the meaning of the Bihar Finance Act, 1981 (hereinafter referred to as "the Act") and the supply of the food, refreshments and beverages to its members does not constitute sale so as to attract the levy of sales tax under the provisions of the Act. They also seek quashing of orders dated August 15, 1982 and October 18, 1995. passed, at the first instance, by the Assistant Commissioner, Commercial Taxes and, then in revision, by Joint Commissioner, Commercial Taxes, rejecting the petitioners' claim that the supply of food, refreshments and beverages to the different categories of the members of the society did not attract the provisions of the Act.

(3.) THE facts and circumstances leading to the filing of this writ petition can be simply stated thus : On August 23, 1991 the Deputy Commissioner, Commercial Taxes, issued a notice to petitioner No. 1 under section 17(5) of the Act. In the notice, it was pointed out that though engaged in the sale of food articles and alcoholic beverages, petitioner No. 1 had neither got itself registered nor was it making payment of sales tax as provided under the Act. It was accordingly asked to produced its books of account and the records relating to the sales and purchases made by it on a date specified in the notice. In response to the notice, a petition was filed on behalf of petitioner No. 1 making a prayer to drop the proceedings initiated under section 17(5) of the Act on the plea that the supply of food, refreshments and beverages made by the society to its members did not attract the provisions of the Act. By order dated August 15, 1992 (annexure 8), the Assistant Commissioner, Commercial Taxes, rejected the petition filed on behalf of petitioner No. 1 and turned down the prayer to recall the notice, holding that petitioner No. 1. was a dealer within the meaning of the Act. Against this order, a revision was filed under section 46(2)(a) of the Act on behalf of the petitioners which was finally dismissed by order dated October 18, 1995 (annexure 13) passed by the Joint Commissioner, Commercial Taxes. This writ petition was then filed in this Court seeking the reliefs as noted above.