2003 (1) TMI 666

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..... iance is placed upon S.O. No. 478 issued by the Government of Bihar on December 22, 1995 in terms of section 7(3)(b) of the Bihar Finance Act, 1981. 2.. The petitioner, except petitioner No. 5, have their business activities in the State of Bihar, where they carry their manufacturing operations. Till November 14, 2000, the petitioners had no difficulty in availing of the benefits under S.O. No. 478 because till that date, the territories now forming part of the Jharkhand State were included in the erstwhile State of Bihar, but with effect from November 15, 2000, by virtue of section 3 of the Bihar Re-organisation Act, 2000, the State of Jharkhand came into existence. The coming into existence of the State of Jharkhand with effect from Nov .....

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..... Act, 1981, could not be invoked or made applicable with respect of inter-State sale because the interState sale is governed and regulated by the provisions of the Central Sales Tax Act, 1956. The movement of goods being therefore, of interState in nature, 1981 Act did not govern the sale transactions inasmuch as 1981 Act governs only the transactions in which the goods are sold for intra-State sale. 3.. It may be unfortunate for the petitioners, but on account of the aforesaid unforeseen situation and unconceivable circumstance, the unexpected event of the new State coming into being, the benefits flowing from S.O. No. 478, even though the same has been adopted by the Government of Jharkhand, cannot now be given effect to in so far as the .....

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..... examination of all relevant aspects of the matter, we find ourselves unable to agree with the aforesaid submission. On the question of enforceability of 1995 policy resolution, our view is that even in 1995 itself, when undivided State of Bihar was in existence, the State Government's intention was to grant incentive with respect of the payment of sales tax under the Bihar Finance Act, 1981. 1995 policy resolution did not contain or carry any explicit or implied indication that the State Government intended to grant any exemption with respect to the transaction in the nature of inter-State sale of goods. In other words, what the Government of Bihar (in 1995) promised in the aforesaid 1995 policy resolution was that in so far as the intra .....

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