M/S Lumbini Beverages Pvt.Ltd. v. The State Of Bihar And ORS
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.5613 of 2005 ====================================================== M/S LUMBINI BEVERAGES PVT.LTD. A Company incorporated under the provisions of the Companies Act, 1956, having its Industrial Unit/place of business situated at H-2, EPIP, Industrial Area, Hajipur (Vaishali) through one of its Directors, Manoj Khilani, S/o- Shri Lakshmi Chand Khilani, Resident of Sheela Residency, Boring Road, P.S. Budha Colony, Town & DistrictPatna- 800 001 ... ... Petitioner/s
Versus
1. THE STATE OF BIHAR through the Chief Secretary, Old Secretariat, Patna
2. The Secretary-cum-Commissioner of Commercial Taxes, Bihar, Vikash Bhawan, Bailey Road, Patna
3. The Secretary, Department of Industries, Government of Bihar, Patna, Vikash Bhawan, Bailey Road, Patna
4. The Joint Commissioner of Commercial Taxes (Admn.), Tirhut Division, Muzaffarpur
8. The Assistant Commissioner of Commercial Taxes, Hajipur Circle, Hajipur (Vaishali) ... ... Respondent/s ====================================================== Appearance :
For the Petitioner/s :
Mr. S. D. Sanjay, Sr. Advocate For the Respondent/s :
Mr. Vikash Kumar, S.C. 11 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)
2/5 Date : 26-08-2020 Petitioner prayed for the following relief(s):- "[i] For a declaration that the provisions of Bihar Value Added Tax Ordinance, 2005 cannot nullify & take away the vested rights accrued to the Petitioners with retrospective effect before expiry of the period/Quantum] for exemption from payment of Sales-tax on sale of Finished Products under the Notification- S0 No.: 479 dt. 22.12.1995 and Notification-S 0 No.: 57 dt.02.03.
3/5 the basis of the Bihar Finance Act, 1981, Notificationissued there under and granted under the Industrial Policy Resolution as being arbitrary, discriminatory and opposed to the doctrine of promissory estoppel;
[v] For a declaration to read down the provisions of the Bihar Value Added Tax Ordinance, 2005 and to allow the Petitioners to avail the benefit of exemption for the remaining period in terms of the Government Notification S 0 No: 479 dt. 22.12.1995 and S.O No: 57 dt. 02.03.2000;
[vi] For a declaration that the provisions of the Bihar Value Added Tax Ordinance, 2005 will not be applicable to the products of the Petitioners till it reaches to the hands of the customers, and under the present ordinance, no tax could be leviable on the value addition on subsequent sale in absence of any provisions of deemed adjustment of the exempted portion of the tax amount ;
[vii] For a declaration that the Present Case is covered by the law laid down by this Hon'ble Court in the case of Iris Electronic [India]Pvt. Ltd. Vs. State of Bihar & Ors. reported in 2003[1] PLJR 509 wherein this Hon'ble Court held that the Sales-tax Department cannot levy any tax on the goods manufactured by an Exempted Unit.
[viii] For restraining the Respondents-Salestax Authorities from raising demand of tax on sale of Products of the Petitioners by the Dealers;
[ix] For a declaration that the so called
4/5 alternative provided in Section 96[3][b] of the Bihar Value Added Tax Ordinance, 2005 read with Rule 57 of the Bihar Value Added Tax Rules, 2005 option for deferment from payment of tax is arbitrary & discriminatory; and for any other relief[s] for which the Petitioners may legally be found entitled to in the facts of the present case."
Learned counsel for the petitioner fairly concedes that with the passage of time, present petition has become infructuous inasmuch as there is change with respect to the position of law.
However, it is pointed out that with the enforcement of the new Enactment/Policy, petitioner alone stands discriminated inasmuch as the benefit of exemption from payment of tax stands conferred to twenty two Industrial Units and only part exemption of benefit has been given to the petitioner.
This issue, in our considered view, can be agitated by the petitioner first with the appropriate authority and thereafter before the appropriate forum in accordance with law. Liberty, as prayed for, is granted for such purpose. We only hope and expect that as and when petitioner as also similarly situated person(s) approach the respondent
5/5 authorities venting out their grievances of discrimination with regard to conferment of benefits under the relevant Statute/Policy, the same shall be considered and decided in accordance with law expeditiously and preferably within a period of three months thereafter.
Petition stands disposed of in the above terms. Interlocutory Application, if any, shall stand disposed of.
(Sanjay Karol, CJ) ( S. Kumar, J) P.K.P./- AFR/NAFR CAV DATE Uploading Date 27.08.2020 Transmission Date