- (1.) As both these writ applications involve the same question of law, they have been heard together and are being disposed of by this common Judgment.
(2.) Heard learned counsel for the petitioner and learned counsel for the State in both the Writ applications.
(3.) The matters under challenge are the review of the assessment of the sales tax, relating to the assessment years 2004-05 and 2005-06. The writ petitioner made some inter-State sales to unregistered dealers. For the inter-State transactions, the petitioner was exempted from the State tax under Section 7 (1-a) of the Bihar Finance Act, 1981, (herein after referred to as the 'State Act'), but was liable to pay tax under Section 8 of the Central Sales Tax Act (herein after referred to as the 'CST Act'). For the inter-State transactions made to the registered dealers, there is concessional rate of tax provided under Section 8 (1) of the CST Act, whereas for the inter-State transactions made to the unregistered dealers, higher rate of tax is provided under Section 8 (2) of the CST Act, which at the relevant time read as follows:- "8. Rates of tax on sales in the course of inter-State trade or commerce,- (1) ---------------. (2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sales of goods in the course of inter-State trade or commerce not falling within sub section (1) - (a) in the case of declared goods, shall be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State; and (b) in the case of goods other than declared goods, shall be calculated at the rate of ten percent or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher; and for the purpose of making any such calculation any such dealer shall be deemed to be a dealer liable to pay tax under the tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law.";