PERMOD KOHLI, J. - (1.) BY Court: Petitioner -Company has asked for quashing the assessment order dated 16th March, 1996, passed by the Assistant Commissioner, Commercial Taxes, Deoghar Circle, Deoghar making assessment for imposition of Entry Tax under 'The Bihar Tax on Entry of Goods into Local Areas for Consumption, use or Sale Therein Act, 1993' for the period 05.04.1995 to February, 1996 to the tune of Rs. 35,36,829.90 and also to quash the Demand Notice dated 16th March, 1996, issued pursuant to the Assessment order. The further prayer is made restraining the Respondents from realizing the amount demanded and also for refund of the amount of Rs. 28,35,280/ - already recovered as a consequence of the assessment.
(2.) IT is not in dispute that the vires of the provisions of the 'The Bihar Tax on Entry of Goods into Local Areas for Consumption, use or Sale Therein Act, 1993' were challenged before this Court in W.P. (T) No. 5354 of 2004. A Division Bench of this Court vide its judgment dated August, 4 2006 declared the same ultra vires being violative of Articles 301 read with Article 301(b) of the Constitution of India. Consequently, the Court also quashed the Notifications issued by the State Government for enforcement of the Act. Mr. Modi, learned G.P. I appearing for the State -Respondents submits that the Division Bench judgment of this Court referred to above is subject matter of challenge before the Apex Court. He however, submits that there is no stay of the judgment of this Court so far. His further contention is that the vires of this Act were challenged earlier also and upheld by the Apex Court and in the light of this fact, the assessment made and demand issued cannot be said to be illegal. His further contention is that the judgment operates prospectively and any assessment made and demand issued prior to the judgment cannot be quashed.
(3.) I have heard the learned Counsel appearing for the parties.;