COMMISSIONER OF COMMERCIAL TAXES BIHAR Vs. ELECTRICAL EXECUTIVE ENGINEER BIHAR STATE

JUDGEMENT

(1.) In pursuance of this Court's order dated 28th August, 1973, passed in Tax Case No. 71 of 1972, the Commercial Taxes Tribunal, Bihar, has stated the case and the question referred to for opinion of this Court is as follows:--

(2.) The Electrical Executive Engineer, Bihar State Electricity Board, Hazaribagh (hereinafter called the assessee) was assessed for duty under the Bihar Electricity Duty Act, 1948 (hereinafter called the Act) by the Assistant Commissioner Commercial Taxes, Hazaribagh Circle, for the period 1964-65 by his order dt 6th December, 1967 (Annexure-A to the statement of case). By this order the assessee's claim for exemption from duty in respect of supply of electrical energy to Damodar Valley Corporation for use in their coal mines and in the Konar Dam was wholly rejected. Being aggrieved by the said assessment order, the assessee preferred an appeal before the Deputy Commissioner, Commercial Taxes, Chotanagpur Division, who by his order dated 20th September, 1969 (Annexure-B to the statement of case) dismissed the appeal with a direction to the assessing authority for rectification of figures and admissibility of rebate after necessary verification. Against that order of the Deputy Commissioner of Commercial Taxes, dated 20th September, 1969, the assessee went in revision before the Commercial Taxes Tribunal, Bihar, Patna.

(3.) Shorn of other details, the relevant facts are that the assessee is a licensee under the Act and sells electrical energy to Damodar Valley Corporation (hereinafter called the Corporation) and other consumers. The assessee has claimed exemption from levy of duty on such supply to the Corporation. Before the revision application was disposed of by the Tribunal, on 3rd September, 1971, the Corporation filed two petitions by one of which the Corporation prayed for being impleaded as an intervener in the application for revision filed by the assessee (this application filed by the Corporation is Annexure-D to the statement of case) and the other application filed by the Corporation was an application for revision of the very order of the Deputy Commissioner, which was impugned by the assessee. The Tribunal heard the learned counsel for both the Corporation and the Revenue and considering all the facts and circumstances of the case rejected the petitions filed by the Corporation by its order dt. 7th October, 1971 (Annexure-F to the statement of case). It is thereafter that the Tribunal disposed of the revision application on 5th November, 1971. The contention of the assessee before the Tribunal in respect of supplies made by him to the Corporation for use in their coal mine and Konar Dam was considered by the Tribunal within the provisions of Section 3 (2) of the Act (Bihar Act 36 of 1948), as substituted by, Amending Act 20 of 1963. The Tribunal held that the electrical energy supplied to the Corporation for raising coal and supplying water for the purpose of generation of electrical energy, was exempt from the levy of electricity duty. In respect of allegation of percentage by the assessing officer at 90% in case of supply to the coal mines and 50% in case of supply to Konar Dam, the Tribunal did not consider it necessary to interfere with the assessment order. The order of the Tribunal is Annexure-G to the statement of case.