M.Y.EQBAL, J. - (1.) BY this writ petition, the petitioner has prayed for quashing the order as contained in letter dated 11.11.2008 issued by the Joint Commissioner Commercial Taxes, Hazaribagh Sub Division, whereby he has accorded sanction to the Commissioner, Commercial Taxes, Ramgarh Circle, Ramgarh for reviewing the assessment order of the petitioner for the years 2002 -03, 2003 -04 and 2004 -05 under Section 47 of the Bihar Finance Act, 1981 . The petitioner has also challenged the notices issued by the Assessing Commissioner, Commercial Taxes, Ramgarh Circle, Ramgarh for reviewing the assessment order of the petitioner for the years 2003 -04 and 2004 -05.
(2.) THE facts of the case lie in a narrow compass: - The petitioner is a limited company registered under Section 14 of the Finance Act, 1981 in Hazaribagh circle and is engaged in the execution of work contracts, which includes erection, testing and commissioning of electrical equipment and other civil contracts. The petitioner was awarded works contracts for erection, testing and commissioning including civil work at Ramgarh Substation. The petitioner said to have carried the entire work and filed returns and deposited total tax amount. According to the petitioner, the assessment order for the financial year 2002 -03 was passed on 17.12.2004 and demand notice of excess payment was issued on 4.1.2005. Similarly, assessment order 2003 -04 was passed on W.P. (T) No.54 of 2009, 27.3.2005 and notice of excess payment was issued on 1.4.2005. For the assessment year 2004 -05, assessment order was passed on 30.11.2005 and notice of excess payment was issued on 30.11.2005. The petitioner accordingly applied on 27.6.2005 for refund of the excess amount of tax for the financial years 2002 -03 and 2003 -04. The petitioner also applied on 18.12.2005 and 15.5.2008 for refund of the excess amount of tax for the financial years 2004 -05 and 2005 -06 respectively. When the refund applications were not processed and order of refund of excess amount of tax was not made in favour of the petitioner, a writ petition was filed being W.P.T. No.4858 of 2008 seeking direction for refund of the excess amount of taxes. In the meantime, according to the respondents, the Joint Commissioner Commercial Taxes by order dated 11.11.2008 accorded sanction for reviewing of the assessment order under Section 47 of the Finance Act, 1981 read with rule 32 of the Bihar Sales Tax Rule for the aforementioned financial years. Consequently, notices were issued for reviewing of the assessment order by the authority on 12.11.2008. These notices are impugned in the instant writ petition. Mr. Rahul Saboo, learned counsel appearing for the petitioner, assailed the impugned orders and notices as being illegal, wholly without jurisdiction and are mala fide. According to the learned counsel, no sanction can be accorded for review of the assessment order after 12 months from the date of the order of assessment. Learned counsel referred Section 47 of the Finance Act (herein after referred as ˜the Act') and rule 32 of the Bihar Sales Tax Rules (herein after referred as ˜Rules').
(3.) MR . R. Krishna, learned counsel appearing for the State, on the other hand, submitted that no limitation of 12 months is provided if the decision is taken by the Commissioner including the Joint Commissioner, Commercial Taxes according sanction for review of the W.P. (T) No.54 of 2009 3 assessment order. Learned counsel put heavy reliance on sub -rule (2) of Rule 32 of the said Rules.;