Customs Department v. the State of Bihar and Anr.
Case brief
What is this about?
The Patna High Court held that the Customs Department is a 'dealer' under the Bihar Finance Act and liable for sales tax on sales of confiscated goods. The court distinguished indirect taxes from direct taxes on property and remitted the question of penalty to the Assessing Authority.
What did the court decide?
Upheld the levy of sales tax but remitted the determination of penalty and interest to the Assessing Authority after a hearing.
What the court decided
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.7606 of 2007
=========================================================== Customs Department, Central Revenue Building, Birchand Patel Path, Patna-1 through the Commissioner of Customs, Patna .... .... Petitioner Versus 1. The State of Bihar through the Commissioner Commercial Taxes, Bihar Patna 2. Commercial Tax Officer, Muzaffarpur Anchal, Muzaffarpur .... .... Respondents with =========================================================== Civil Writ Jurisdiction Case No. 7671 of 2007 =========================================================== Customs Department, Central Revenue Building, Birchand Patel Path, Patna-1 through the Commissioner of Customs, Patna .... .... Petitioner Versus 1. The State of Bihar through the Commissioner Commercial Taxes, Bihar Patna 2. Commercial Tax Officer, Muzaffarpur Anchal, Muzaffarpur .... .... Respondents with =========================================================== Civil Writ Jurisdiction Case No. 7703 of 2007 =========================================================== Customs Department, Central Revenue Building, Birchand Patel Path, Patna-1 through the Commissioner of Customs, Patna .... .... Petitioner Versus 1. The State of Bihar through the Commissioner Commercial Taxes, Bihar Patna 2. Deputy Commissioner, Commercial Taxes, Muzaffarpur Anchal, Muzaffarpur .... .... Respondents with =========================================================== Civil Writ Jurisdiction Case No. 7712 of 2007 =========================================================== Customs Department, Central Revenue Building, Birchand Patel Path, Patna-1 through the Commissioner of Customs, Patna .... .... Petitioner Versus 1. The State of Bihar through the Commissioner Commercial Taxes, Bihar Patna 2. Deputy Commissioner, Commercial Taxes, Muzaffarpur Anchal, Muzaffarpur
Patna High Court CWJC No.7606 of 2007 dt.11-03-2016
2/11
Issues for consideration
3 issues framed by the court
Whether a Central Government department selling confiscated goods under its functions is a 'dealer' liable for sales tax under the Bihar Finance Act.
Whether Central Government propertyrick exempt from State sales tax under Article 285 of the Constitution.
Whether the petitioner is liable to pay penalty and interest for non-filing of returns.
Parties & counsel
- petitioner
Customs Department
- respondent
State of Bihar
- respondent
Commercial Tax Officer
Coram
Case details
As recorded by the court registry
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