9911796707
TMI Blog1988 (12) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... nd bends for the manufacture of domestic briquettes fuel. By reason of late issue of the said certificate the petitioner had to pay sales tax on and from the 17th April, 1984, in respect of sales of the aforesaid raw materials. 3.. The petitioner contends that in terms of the said certificate it was exempted from payment of any sales tax and as such it is entitled to refund of sales tax paid by it during the period of exemption. 4.. It is not disputed on behalf of the respondents that the petitioner is entitled to exemption from levy of sales tax or purchase tax in terms of the said certificate. The only point raised is that such exemption is allowable to the petitioner on and from the date of its registration and not from the period me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of set-off of tax paid on purchase of raw materials vide notification issued under section 22 of the Bihar Finance Act, 1981." 6.. Learned Advocate for the writ petitioner also relied on and cited the following decisions: (a) Kailash Roller Flour Mills v. Assistant Commissioner of Commercial Taxes [1981] 48 STC 297. Here a Division Bench of this Court disposed of a number of cases concerning two notifications issued by the State of Bihar, namely, S.O. Nos. 139 and 141, both dated the 18th January, 1977, whereby the Government provided exemption to newly set up small-scale industrial units from the levy of general sales tax, special sales tax or purchase tax in respect of sale of raw materials sold to the owners of such industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to exemption for the full period as originally recorded in their certificates. (b) Tara Steel Industries v. Assistant Commissioner of Commercial Taxes [1986] 61 STC 301. In this case a Full Bench of this Court considered and construed a notification issued by the State of Bihar, namely, Notification No. S.O. 353 dated the 14th March, 1974, whereby the State Government exempted from levy of general sales tax, special sales tax and purchase tax on sales of the raw materials to the owner of a newly set up industrial unit approved by the Department of Industries for a period of five years from the date the industry started its production. Subsequently, the incentives by way of exemption, which were granted up to 31st March, 1979, were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was allowed and had been duly registered earlier would be entitled to exemption from sales tax. 7.. Learned Government Pleader No. 2, however, relied on and cited another Full Bench decision of this Court in Gupta Brick Works v. Commercial Taxes Tribunal, Bihar, Patna reported in [1985] 58 STC 267; 1985 PLJR 791. In this case the Full Bench considered and construed two notifications respectively No. 9924-FT dated the 19th September, 1969, and S.O. No. 351 dated the 14th March, 1974, the currency of which were respectively from the 19th June, 1969 to 31st March, 1974, and 1st April, 1974 to 31st March, 1979. By the said notifications exemption of general and special sales tax on sales of finished products was granted to newly set up s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Bihar. The petitioner in the instant case was granted a certificate of registration on the 17th October, 1985, within the relevant period. In the certificate itself it was recorded and endorsed that the date of commencement of production of the registered unit was the 17th July, 1984. This particular endorsement in the registration certificate clearly records that though the unit was registered in 1985, it was in existence as such and had started its production earlier in July, 1984, and such an endorsement, in our view, was intended to give a retrospective effect to the certificate. This view is further supported by the certificate of exemption dated the 23rd March, 1988, which was granted to the petitioner, recording that the certifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts to contend, in the face of the said certificate, that the petitioner will be entitled to exemption only from the date of its registration and not from the date for which the certificate of exemption has been granted to the petitioner. 11.. For the reasons as aforesaid the principles laid down by the Full Bench in Gupta Brick Works [1985] 58 STC 267 (Pat); 1985 PLJR 791 cannot apply in all force in the facts of this case and can be distinguished. For the above reasons, we hold that the petitioner is entitled to claim exemption of sales tax during the period of the validity of the certificate. To the extent it has paid sales tax during the period of exemption the petitioner will be entitled to the refund of the same. The writ petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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