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of <h1>Court directs adjustment of tax liabilities to prevent additional payments, orders prompt sales tax clearance & excise license renewal.</h1> The court directed authorities to adjust tax liabilities to prevent additional payments for entry tax by the petitioner. It instructed prompt ... - Issues:Renewal of excise licence under Bihar Excise Act for the financial year 2003-2004, sales tax clearance certificate for the financial year 2002-2003, adjustment of tax dues under Bihar Finance Act and Bihar Tax on Entry of Goods into Local Areas for Consumption Act.Renewal of Excise Licence:The petitioner, a registered dealer under the Bihar Finance Act and Bihar Tax on Entry of Goods into Local Areas for Consumption Act, sought renewal of its excise licence for the financial year 2003-2004. The petitioner, engaged in the manufacture and sale of beer, applied for renewal but was asked to provide a sales tax clearance certificate. The Deputy Commissioner of Commercial Taxes refused the clearance certificate citing dues against the petitioner for previous financial years. The State admitted no dues under the Finance Act but acknowledged dues under the Bihar Tax on Entry of Goods into Local Areas for Consumption Act. The court noted the petitioner's payment of sales tax under the Finance Act, which should cover the tax required under the Bihar Tax on Entry of Goods into Local Areas for Consumption Act. The court directed the authorities to adjust the tax demanded under the Act from the tax paid under the Finance Act, ensuring no additional payment by the petitioner for entry tax.Sales Tax Clearance Certificate:The refusal of the sales tax clearance certificate by the Deputy Commissioner of Commercial Taxes was based on dues under the Bihar Tax on Entry of Goods into Local Areas for Consumption Act for previous financial years. The court emphasized that technicalities should not impede justice and directed the authorities to consider granting the clearance certificate within ten days of the court order. Once the clearance certificate is produced, the concerned authority should promptly decide on granting the excise licence renewal.Adjustment of Tax Dues:The court highlighted the practice of adjusting the tax liabilities under the Bihar Finance Act and the Bihar Tax on Entry of Goods into Local Areas for Consumption Act, which was discontinued after 1996. However, the court reasoned that the tax already paid under the Finance Act should cover the dues under the Act. The court directed the authorities to adjust the tax demanded under the Act from the tax paid under the Finance Act, ensuring no additional payment by the petitioner for entry tax. The decision to adjust the tax dues and grant the necessary clearances was to be made promptly to facilitate the renewal of the excise licence.Conclusion:The court disposed of the writ application with the direction to adjust the tax liabilities appropriately, ensuring no additional payment by the petitioner for entry tax. The authorities were instructed to consider granting the sales tax clearance certificate and subsequently renew the excise licence without delay upon compliance with the court's directives.
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