9911796707
TMI Blog2011 (3) TMI 1726X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the Bihar Tax on Entry of Goods into Local Areas for Consumption, use or Sale Therein Act, 1993 (hereinafter referred to as "The Act of 1993‟) to challenge the orders dated 29th July 2010 made by the Deputy Commissioner of Commercial Taxes, West Circle, Muzaffarpur, under Section 8 of the Act of 1993 read with Section 39(4) of the Bihar Value Added Tax Act, 2005 (hereinafter referred to as "the Act of 2005‟). Under the impugned orders an entry tax and the interest thereon is sought to be recovered for the financial years 2007-08 to 2010-11 for the HDPE/Plastic Containers imported by the dealer for packaging its product (Lichi Pulp). Learned counsel Mr. K.N.Jain has appeared for the petitioner. The challenge is three fold. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act of 1993 is the charging section. It provides for levy and collection of tax on entry of scheduled goods into a local area for consumption, use or sale therein. Section 7 of the Act of 1993, inter alia, provides for imposition of penalty in case a dealer fraudulently evades payment of tax under that Act or wilfully acts in contravention of any of the provisions made in that Act or the rules made thereunder. Section 8 of the Act of 1993 provides that the authority empowered to make assessment, collect or enforce payment of tax and penalty payable by dealer under the Bihar Finance Act, 1981, is empowered to assess, collect and enforce payment of tax and penalty payable under the Act of 1993. Such authority is also empowered to exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainers as emphasized by Mr. Jain, they are liable to levy of entry tax at the rate of 4%. The question whether they are plastic containers or HDPE containers is totally irrelevant and has no significance as far as the petitioner‟s liability to pay entry tax is concerned. The next question is whether the articles were imported for consumption, use or sale in the State of Bihar. According to the petitioner, the finished product (lichi pulp) was packaged in the HDPE containers and were exported out of the State of Bihar. In the submission of Mr. Jain the imported articles were not consumed, used or sold in the State of Bihar. The said articles were, therefore, not exigible to entry tax under the Act of 1993. Undoubtedly, the containers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we partially allow this petition. We uphold the assessment of entry tax made by the Deputy Commissioner of Commercial Taxes, West Circle, Muzaffarpur. We hold that the petitioner is not liable to pay interest over the amount of entry tax levied by the assessing officer. The impugned orders of recovery made under section 39(4) of the Act of 2005 are quashed and set aside insofar as the interest is sought to be recovered on the amount of entry tax assessed. The Deputy Commissioner of Commercial Taxes will, within two months from today, modify the impugned orders and issue orders of recovery of entry tax in accordance with law and in consonance with the above discussion. The writ petition stands allowed to the aforesaid extent. The parties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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