HINDUSTAN PETROLEUM CORPORATION LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this writ application the petitioner prays for quashing of the orders contained in annexures 1, 2 and 3 in so far as the orders hold that additional tax is not deductible from the taxable turnover of the petitioner for the purpose of levy of general sales tax and special sales tax.

(2.) The petitioner is a Government company within the meaning of Section 617 of the Companies Act, 1956. For the year 1975-76 the company returned a gross turnover of Rs. 6,90,07,425.44. In the gross turnover the amount of additional tax collected by it from the purchasers amounting to Rs. 4,72,742.31 was not included. The assessing officer held that the amount collected by way of additional tax by the petitioner-company from the purchasers formed part of the gross turnover of the company. It was also held that the amount of additional tax was not deductible from the taxable turnover of the petitioner for the purpose of computing the general sales tax, special sales tax and additional tax payable by the petitioner. In respect of the amount of additional sales tax collected by the petitioner, as mentioned above, the Assessing Officer fixed the amount of additional sales tax collected by the petitioner at a slightly higher figure of Rs. 4,77,517.48. The order of the Assessing Officer contained in annexure 1 has been affirmed in appeal (annexure 2). The appellate order has been affirmed by the revisional order (annexure 3). The petitioner thereafter filed a revision before the Commercial Taxes Tribunal. This revision was dismissed in limine on the point of limitation. In this writ application the circumstances under which the petitioner could not move before the Commercial Taxes Tribunal in time have been explained.

(3.) Learned counsel for the petitioner raised two contentions. The first contention is that the additional tax realised by the petitioner from the customers cannot be included in the gross turnover of the petitioner within the meaning of Section 2(k) of the Bihar Sales Tax Act. The second contention is that in determining the taxable turnover under Section 7 of the Act the amount of additional tax realised by the petitioner from the customers has to be deducted.