SHAKTI STEEL PIPES Vs. STATE OF JHARKHAND
LAWS(JHAR)-2001-11-20
HIGH COURT OF JHARKHAND
Decided on November 26,2001

SHAKTI STEEL PIPES Appellant
VERSUS
STATE OF JHARKHAND Respondents

JUDGEMENT

- (1.) THE petitioner has preferred this writ petition, praying therein the following reliefs : (i) For a declaration that the decision of the Purchase Committee dated 12.5.2001 and any subsequent decision of the Purchase Committee on the same line for awarding the supply order is arbitrary, discriminatory, and hence, liable to be quashed; (ii) For a declaration that the respondent -State Authorities acting through the Purchase Committee while making comparison of costs of any commodities of the same quality has to take into consideration the actual price/landed cost payable by the State Government for purchase of any commodities/for taking supply of any commodities; (iii) For a declaration that once the Respondent -State Authorities having floated the sealed Tender, and once, the Tenderers having submitted their quotations, the State Authorities can not be allowed to offer for supply of commodities to the Tenderers having quoted higher price subject to the Purchase Price Preference Rules, 1975 fide Resolution No. 19806 dated 22.10.1975; (iv) For a declaration that the respondent -State of Jharkhand can not act for cancelling the exemption granted by the State of Bihar in view of the specific provision Section 41(2) of the Bihar Reorganisation Act, 2000. (v) For a declaration that the respondent -State of Jharkhand can not force the Tenderers of the outside the State of Jharkhand to take Registration in the State of Jharkhand under the local Sales -tax Act in absence of any liability under the Local Sales -tax law and (vi) For restraining the respondent -State from prescribing any condition on the Tenderers to raise the Bill for the supply only from the State of Jharkhand, and for any other relief or reliefs for which the petitioner may be found legally entitled to under the facts and circumstances of the case.
(2.) THE petitioner claims to be a company engaged in manufacturing G.I. Pipes and supplying its products throughout the country its quality and rates being reasonable and competitive in market. It is registered under Central Sales -tax Act. 1956 as also under the Bihar Finance Act, 1981 of the State of Bihar. It claims to be exempted from any tax as per Government of Bihar Incentive Policy which also covers the present territory of the State of Jharkhand. The exemption from payment of Bihar Sales -tax and Central Sales -tax has been granted to the petitioner in terms with the Governments notification bearing S.O. No. 479 dated 22nd December. 1995 and S.O. No. 481 dated 22nd December, 1995. Further, case of the petitioner is that the State of Jharkhand through its Public Health Engineering Department P.H.E.B. fcr short -came out with short tender notice tn the newspaper Times of India, Patna dated 14th April, 2001 for supply of six items including G.I. Pipes. 23rd of April. 2001 was fixed as the last date for selling B.O.Q. As per the tender notice, certain requirements and pre -conditions were laid down but no condition was shown for tenderers to be registered under the provisions of the Bihar Finance Act, 1981 in the State of Jharkhand nor any condition was put that the sale is to be taken effect locally and Inter -state trade is not permissible.
(3.) IT appears that the respondents subsequently prescribed a condition to furnish Sales -tax Clearance Certificate of the State of Jharkhand. It was challenged by the petitioner in CWJC No. 1756 of 2001. In the meantime, another similar writ petition, preferred by one M/". Rama Expalnvest Pvt. Ltd. v. State of Bihar, CWJC No. 1800 of 2001. (Reported in 2001 (2) J C R 133 (Jhr)), was taken up and decided by this Court vide its Judgment and order dated 8th May. 2001. Clause 16 of the tender notice to the effect that the tenderers should obtain the Sales -tax Clearance from the State of Jharkhand. was held to be unreasonable, irrational, and having no nexus with the object of the tender or supply of goods as per the tender notice and the same was set aside. However, the competent statutory authority of the State of Jharkhand was given liberty to lay down guidelines under the Bihar Finance Act. 1981 or any other law. relating to supply and receipt of articles.;


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