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TMI Blog1998 (9) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... erment of Tax) Rules, 1990 (hereinafter called "the Deferment Rules") which came into effect from January 30, 1990. 3.. Rule 5 of the Deferment Rules provides that the State Government may permit an industrial unit to defer the payment of tax payable under the Bihar Finance Act for a period of five years from the date of commencement of commercial production (in certain cases the period of deferment is seven years). The amount payable under the said Act but so deferred shall be paid within a period of ten years in the manner laid down in section 6. In terms of section 7 an industrial unit eligible for the claim of deferred payment of tax, is required to apply and obtain a certificate of eligibility. Rule 14 provides for separate registration of such industrial units. 4.. By order as contained in annexure 20 the State Level Committee, constituted under the said Rules, has rejected the application of the petitioner for grant of the benefits of the deferment scheme on April 22, 1998. Earlier on August 26, 1994, by order contained in annexure 22, the Deputy Commissioner of Commercial Taxes, Urban Circle, Jamshedpur, had directed the petitioner to produce the registration certific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration certificate covering the business activity in respect of which it is opting for the scheme of deferred payment of tax. An industrial unit shall not be entitled to carry on any other business activity other than the one in respect of which it is entitled to the benefit of the scheme of deferred payment of tax under the said certificate of eligibility. The industrial unit shall also submit a consolidated return in respect of all the places of its business in respect of which it has availed of the benefit of the scheme of deferred payment of tax to the commercial taxes authority from whom it has obtained the certificate of eligibility." The term "industrial unit" has been defined under rule 2(iv) of the said Rules as follows: "(iv) Industrial unit means and includes,- (a) a new industrial unit established in the State of Bihar by a dealer registered under the Act and commencing commercial production on or after 1st April, 1989; (b) an existing industrial unit undertaking expansion; (c) a sick unit undertaking rehabilitation or revival. Explanation.-For the purpose of these rules an industrial unit shall be an industrial unit registered/licensed by Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the benefits of the deferred payment of sales tax if it fulfils other conditions on merit. 11.. This takes me to the interpretation of rule 14. The essence of rule 14, as is evident from its heading, is that "industrial unit" shall be treated as a separate entity (for the purpose of the Rules) requiring separate registration thereunder. It is noteworthy that the words "separate entity" are qualified by the words "for the purpose of sales tax registration". Admittedly, the only provision regarding registration (of dealers) under the Bihar Finance Act, 1981, which is the relevant Act with respect to sales tax in the State of Bihar, is the one contained in section 14 of that Act. What rule 14 of the Deferment Rules further lays down is that it shall be deemed to be a separate entity for the purposes of the Rules and for the purpose of the sales tax registration and "consequently....... obtain a separate registration certificate covering the business activity in respect of which it is opting for the scheme of the deferred payment of tax". 12.. It would appear that the application for separate registration with respect to the cement division was rejected, as noted above, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be made effective from August 20, 1990, the date on which we had applied for amendments earlier. This application seeking for amendments in our existing sales tax registration certificate No. JU-1-R is as per your direction and is under protest without prejudice to our contention that it will not affect our right to claim benefit of deferment of tax as admissible under the appropriate law." 13.. Section 14 of the Bihar Finance Act, 1981 makes the registration of every dealer, liable to pay tax under section 3 or section 4 of that Act, compulsory. It cannot sell or purchase goods unless it has been granted and is in possession of a valid registration certificate issued thereunder. The provision regarding submission of application for registration and the grant of registration certificate, so far as relevant for the purpose of the present case, is contained in sub-section (2) of section 14 which may usefully be noticed as hereunder: "(2) Every dealer required by sub-section (1) to be in possession of a registration certificate shall apply for the same in the prescribed manner to the prescribed authority, and the said authority shall, on being satisfied that the applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e covering the business activity in respect of which it is opting for the scheme of deferred payment of tax". As pointed out above, the only provision regarding registration of dealer under the sales tax law is the one contained in section 14 of the Bihar Finance Act, 1981. Refusal on the part of the Deputy Commissioner to grant separate registration certificate with respect to the cement division, thus, virtually amounts to denial of the benefits of the deferred payment of sales tax under the Deferment Rules. Because unless the unit is registered under the Bihar Finance Act and has obtained a separate registration certificate, it cannot claim that benefit. Section 14 of the Bihar Finance Act contemplates a common registration certificate on the basis of the same registration with respect to different goods or classes or descriptions of goods. But there is nothing in section 14 or elsewhere in the Bihar Finance Act which prohibits a dealer, already in possession of a registration certificate with respect to certain specified goods or class or description of goods, from getting separate registration for other goods or class or description of goods. Had there been no such provision a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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