V.K.GUPTA,J - (1.) IN this petition filed under article 226 of the Constitution of India, a group of entrepreneurs having their business activities and bases in the State of Bihar has approached this Court for issuance of a mandamus or for grant of any other appropriate relief with respect to the continuance of exemption from the payment of sales tax on the purchase of raw material, even though now the purchase of raw material is by way of inter-State sale transaction. Reliance is placed upon S. O. No. 478 issued by the Government of Bihar on December 22, 1995 in terms of section 7 (3) (b) of the Bihar Finance Act, 1981.
(2.) THE petitioner, except petitioner No. 5, have their business activities in the State of Bihar, where they carry their manufacturing operations. Till November 14, 2000, the petitioners had no difficulty in availing of the benefits under S. O. No. 478 because till that date, the territories now forming part of the Jharkhand State were included in the erstwhile State of Bihar, but with effect from November 15, 2000, by virtue of section 3 of the Bihar Re-organisation Act, 2000, the State of Jharkhand came into existence. The coming into existence of the State of Jharkhand with effect from November 15, 2000 gave rise to a peculiar problem as far as the petitioners are concerned because, even though prior to November 15, 2000, the purchases of raw material effected by the petitioners having their units of Bihar were made from within the territories of one State, namely, the then State of Bihar, after November 15, 2000, the purchases of raw material effected by the petitioners were made in the territories now comprising in the State of Jharkhand, even though the raw material was meant for being sent to the State of Bihar for consumption in the units of the petitioners in Bihar State. As long as the raw material was being purchased and the same was being consumed within the same State, within one State, the exemption notification being S. O. No. 478 was applicable and could be invoked because it was issued by the same State Government in which the raw material was being purchased and where the same was consumed for production of finished products. Before November 15, 2000, therefore, the purchase of raw material was an event of intra-State sale. However, after November 15, 2000, the situation turned topsy-turvy and drastically converted the event and incidence of sale from intra-State sale to inter-State sale inasmuch as the raw material was purchased in the State of Jharkhand and the same was being sent to the State of Bihar for use and consumption. The exemption Notification No. S. O. 478, therefore, having been issued in terms of section 7 (3) (b) of the Bihar Finance Act, 1981, could not be invoked or made applicable with respect of inter-State sale because the inter-State sale is governed and regulated by the provisions of the Central Sales Tax Act, 1956. The movement of goods being therefore, of inter-State in nature, 1981 Act did not govern the sale transactions inasmuch as 1981 Act governs only the transactions in which the goods are sold for intra-State sale.
(3.) IT may be unfortunate for the petitioners, but on account of the aforesaid unforeseen situation and un-conceivable circumstance, the unexpected event of the new State coming into being, the benefits flowing from S. O. No. 478, even though the same has been adopted by the Government of Jharkhand, cannot now be given effect to in so far as the petitioners are concerned, because the exemption as contemplated in S. O. No. 478 being under section 7 (3) (b) of 1981 Act (which relates to only intra-State sale), the petitioners cannot get any relief. As already observed, with respect to the event of inter-State sale, the provisions of the Central Sales Tax Act are attracted under which no exemption notification has been issued by the appropriate Government.;