The High Court of Patna quashed a notice under Section 47 of the Bihar VAT Act, 2005, and an order requiring a 50% tax deposit, holding the demand unjustified for inter-State stock transfers.
Notice dated 14.1.2015 and order dated 20.2.2015 were quashed; no further payment required during appeal pendency.
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Patna High Court CWJC No.4086 of 2015 dt.28-04-2015
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4086 of 2015
=========================================================== 1. Central Organization for Railway Electrification, a Department of Government of India having its office at inside General Stores Depot, North Frontier Railway, P.O. + P.S. Bhaktinagar, New Jalpaiguri (West Bengal) through its authorized signatory, Dhananjay Roy, son of Shri Rajendra Nath Roy, resident of Uttar Mouamari, P.O. Domohani, P.S. Maynaguri, District - Jalpaiguri (West Bengal).
.... .... Petitioner/s
Versus
.... .... Respondent/s
=========================================================== Appearance :
For the Petitioner/s : Mr.D.V.Pathy
Mrs. Manju Jha
Mr. P.K. Mishra
For the Respondent/s : Mr.Vikas, A.C. to PAAG
=========================================================== CORAM: HONOURABLE MR. JUSTICE RAMESH KUMAR DATTA
and
HONOURABLE JUSTICE SMT. ANJANA MISHRA ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAMESH KUMAR DATTA) Date: 28-04-2015
Heard learned counsel for the petitioner and learned counsel for the State.
The petitioner seeks quashing of the notice dated 14.1.2015 under Section 47 of the Bihar Value Added Act, 2005 issued by the Deputy Commissioner of Commercial Taxes, Katihar Circle, Katihar as also the order dated 20.2.2015 passed by the Joint Commissioner of Commercial Taxes (Appeals), Purnea Division, Purnea. By the notice dated 14.1.2015, the Branch Manager, State Bank of India, Main Branch, Siliguri has been directed to pay an amount of Rs.2,55,43,960/- on account of the taxes imposed under Section 40 (5) of the Bihar Value Added Act, 2005, whereas by the order dated
Patna High Court CWJC No.4086 of 2015 dt.28-04-2015
20.2.2015, the Joint Commissioner had directed that in case the petitioner deposits 50% of the disputed amount by 12.3.2015 then the rest amount shall remain stayed during the pendency of the appeal.
Learned counsel for the petitioner submits that in the proceedings under Section 40 of the VAT Act, the petitioner had produced a few documents and had thereafter sought time to produce the remaining documents and although there may have been some laches on the part of the petitioner in producing the same but considering the nature of the transaction the order in question is completely unjustified as invoices would show that the nature of transaction is of inter-State stock transfers or inter-State sales and thus in no case, the tax leviable under the VAT Act at the rate of 13.5% would be applicable. As a matter of fact, more amount than the tax leviable has already been deducted and deposited by way of TDS by the competent authorities.
On a consideration of the facts and circumstances stated in the writ petition and in the counter affidavit, the order dated 20.2.2015 is quashed and it is directed that no further payment shall be required to be made by the petitioner during the pendency of the appeal before the Joint Commissioner.
With the aforesaid observations and directions, the writ application is disposed of.
V.P.Sinha/- (Ramesh Kumar Datta, J)
(Anjana Mishra, J)
U
2 issues framed by the court
Whether the notice under Section 47 and the appeal order directing 50% deposit under Section 40(5) of the Bihar VAT Act, 2005 should be quashed given the inter-State nature of the transactions.
Whether the petitioner is required to make any further payment during the pendency of the appeal before the Joint Commissioner.
2 provisions across 1 enactments
Central Organization for Railway Electrification
The State of Bihar through Commissioner of Commercial Taxes, Bihar
Joint Commissioner of Commercial Taxes, (Appeals), Purnea Division, Purnea
Dy. Commissioner of Commercial Taxes, Katihar Circle, Katihar
Asstt. Commissioner of Commercial Taxes, Katihar Circle, Katihar
Ramesh Kumar Datta
Anjana Mishra
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
