9911796707
TMI Blog2004 (2) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... and on purchase of raw materials, against the sales tax paid by it on sale of finished goods and was not entitled to set-off the additional tax paid on the purchase of raw materials against the sales tax paid on sale of finished goods and directing the petitioner to deposit the amount of additional tax wrongly set-off. According to the petitioner, a company engaged in the manufacture of coaltar (pitch) and allied products, it was entitled to the concessions held out by the Jharkhand Industrial Policy, 2001 and the Notifications S.O. Nos. 65 and 66, both dated January 12, 2002 and to claim set-off in terms of sections 22 and 23 of the Bihar Finance Act, 1981. The petitioner has been found entitled to such a set-off and once it is found that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) of the Jharkhand Industrial Policy, 2001, certain benefits were given to the industrial units coming within the purview of that policy. The relevant clause provides: "New industrial units as well as existing units which are not availing any facility of tax deferment or tax-free purchases or taxfree sales under any notification announced earlier, shall be allowed to opt for set-off of Jharkhand sales tax paid on purchase of raw materials within the State of Jharkhand only against sales tax payable either under the Jharkhand Sales Tax Act or the Central Sales Tax Act on the sale, excluding stock transfer or consignment sale outside the State, of finished products made out from such raw materials, subject to a limitation of six months or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same terms extends the benefit of set-off even if the sale of the finished product has been made in the course of interState trade. Sections 22 and 23 by themselves do not advance the case of the petitioner and they only indicate that the extent of adjustment and its manner would be as laid down in the order allowing the permission. 7.. The main argument raised on behalf of the petitioner is that "tax" is defined to include additional tax payable under the Act as can be seen from section 2(x) of the Act and when sections 22 and 23 allow set-off of the amount of tax paid, that would include the amount of additional tax paid as well. The definition of tax was an inclusive definition and additional tax has been specifically brought within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r [1985] 58 STC 61, wherein the definition of "tax" occurring in the Act was referred to and it was opined that a dealer was entitled to recover from the purchaser not only the sales tax, but also the additional tax which was payable by him under the Bihar Sales Tax Act, 1959. 8.. Before considering this submission, we think it appropriate to refer to the scheme of the Bihar Finance Act, now the Jharkhand Finance Act. Section 3 of the Act is the charging section insofar as sales tax or purchase tax is concerned. The charging section relating to the additional tax is section 6. Section 6 provides that every dealer having a gross turnover exceeding the specified quantum as laid down in section 3, shall pay an additional tax at such rate not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax, but also for its exemption. Their Lordships distinguished the decisions of the Supreme Court earlier referred to, by pointing out that in the enactments concerned therein, the charging section for additional tax was not self-contained. Learned counsel for the petitioner tried to argue that in Kumar Distributors' case [1995] 99 STC 441 the Supreme Court was mainly concerned with the question whether an exemption under section 7(3) of the Act ipso facto covered also the additional tax leviable under section 6 of the Act and if so understood, this Court could hold that the right to setoff took in not only the sales tax, but also the additional tax. We have already indicated that in terms of the relevant clause in the industrial policy an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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