ALTAMAS KABIR, J. - (1.) THIS writ application involves 'the interpretation of a notification dated 22nd June, 2001, issued by the State of Jharkhand in exercise of powers conferred by Clause (b) of Sub -section (5) of Sec. 8 of the Central Sales Tax Act, 1956, which reads as under : NOTIFICATION The 22nd June, 2001 S.O. 25, dated the 25th June, 2001. - -In exercise of the powers conferred by Clause (b) of Sub - section (5) of Section 8 of the Central Sales Tax Act, 1956( Act 74 of 1958) the Governor of Jharkhand is pleased to direct that tax payable under Sub -section (1) or (2) of Section 8 of the said Act in respect of sale of all types of glass and glass sheets in the course of inter -State sale or commerce from any place of business in the State of Jharkhand shall be calculated at the rate of three per centum and no statutory form in this regard shall be required.
(2.) THIS notification shall come into force with effect from 16th June, 2001. By the order of Governor of Jharkhand A. Tiwari Addl. Secretary to Government Finance Department, Jharkhand, Ranchi. 2 The writ petitioner is a public limited company incorporated under the provisions of the Companies Act, 1956, having its industrial unit situated at Madhupur in the district of Deoghar, Jharkhand. The petitioner is also a registered dealer under the provisions of the Bihar Finance Act, 1981 , as well as the Central Sales Tax Act, 1956u nder the Deoghar Circle. Deoghar. The writ petitioner is engaged in the manufacture of glass and glassware made of opal glass. As indicated hereinabove, the unit is situated at Madhupur in Deoghar. On 25th June, 2001, the State of Jharkhand issued the aforesaid notification reducing the rate of tax in respect of sale of all types of glasses and glass -sheets from 4% to 3% in course of inter -State trade and further exempted dealers from the requirements of filing declaration in Form "C" on such sales.
(3.) ON publication of the aforesaid notification, the writ petitioner started charging tax @ 3% on sales involving inter -State trade since it was under the impression that it was covered by the aforesaid notification. However, by way of abundant precaution, the writ petitioner company wrote to the Assistant Commissioner of Commercial Taxes, Deoghar Circle, on 27th May, 2002, with a copy to the Deputy Commissioner of Commercial Taxes, at Ranchi, informing them that since the petitioner was covered by the said notification, tax on sales of glass and glass -ware in course of the inter -State trade was being charged @ 3% in terms of the notification. It is the petitioner 's case that it did not receive any response to its letter, nor was any objection raised that the petitioner was not covered by the said notification dated 25th June, 2001. For the first time, by letter dated 9th January, 2004, the petitioner was informed by the Assistant Commissioner of Commercial Taxes, Deoghar Circle that it had wrongly deducted and paid taxes @ 3% on its products manufactured out of glass since the correct rate was 4% in case of sale to registered dealers and 12% in case of sale to unregistered dealers. The writ petitioner company was also directed to show cause as to why penalty should not be imposed under Sec.16 and Sec.16(9) of the Bihar Finance Act, 1981 , read with the relevant provisions of the Central Sales Tax Act and to further show cause as to why it should not be directed to correct the returns and to deposit the tax at the correct rate. According to the petitioner, a reply dated 16th January, 2004, was submitted before the Assistant Commissioner of Commercial Taxes, Deoghar Circle, enclosing a copy of the notification and explaining that the petitioner company was liable to charge and deposit tax @ 3% on sale in course of inter -State trade in respect of its products and that returns had, therefore, been correctly filed and taxes has correctly been deposited @ 3% as per the rate prescribed in the notification. The show cause filed on behalf of the petitioner was rejected by an order passed by the Assistant Commissioner of Commercial Taxes, Deoghar Circle, vide Memo No. 246, dated 13th May, 2004, and the petitioner company was directed to deposit tax in relation to its transactions in course of inter -State trade @ 4% in respect of sales to registered dealers and @ 12% in respect of sales to unregistered dealers. Subsequently, the petitioner was informed by a Memo dated 13th July, 2004, written by the Additional Commissioner, Jharkhand, and addressed to the Assistant Commissioner of Commercial Taxes, Deoghar Circle, that the petitioner 'sproduct, namely, "glass -ware" was not covered by the Entry in S.O. No. 25, dated 25th June, 2001, and as such, it would be liable to be taxed @ 4% in relation to its transactions in course of the inter -State trade.;