TaxTMI 
TaxTMI 
1958 (8) TMI 36
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.... Bihar has claimed that a sum of Rs. 8,541-13-6 out of its total claim of Rs. 11,472-3-0 be treated as preferential claim under sub-section (1)(a) of section 530 of the Indian Companies Act, 1956. He has expressed the opinion that the entire claim of the department oug00ht to be treated as an ordinary debt due to a creditor from the company and to be included in the creditors' list but not as a preferential claim. The Superintendent of Commercial Taxes, Patna Urban Circle, has, on the other hand, filed an application supported by an affidavit. In this application, he has stated that the official liquidator has taken a view which is erroneous in law, that a sum of Rs. 9,809-13-0 became due and payable within 12 months next before the relevan....
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.... Order 15-5-57 933 0 0 348 0 0 584 1 0  ....
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....0. Preferential payments: (1) In a winding up, there shall be paid in priority to all other debts: (a) all revenues, taxes, cesses and rates due from the company to the Central or State Government or to a local authority at the relevant date as defined in clause (c) of sub-section (8), and having become due and payable within the twelve months next before that date." Under sub-section (8)(c) of section 530 "the relevant date" is the date of appointment of a provisional liquidator where such a liquidator is appointed. It is, therefore, undisputed that "the relevant date" in the circumstances of this case was the 25th September, 1956, when the provisional liquidator was appointed. I may mention that on this point, there is a difference betwee....
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....time". The charging section under the Bihar Sales Tax Act (Bihar Act XIX of 1947) is section 4. Under that section liability to pay sales tax arises, subject to the provisions of sections 5, 6, 7 and 8, as soon as a dealer effects any sales on a date following a period of twelve months in which his gross turnover exceeds the limit which is provided in different years. Under section 5 a uniform rate of tax is fixed. The dealer is liable to pay tax at that rate on his taxable turnover irrespective of the amount of the turnover. The meaning of the expression "taxable turnover" has been given in the explanation to that section. It provides for exclusion of sales of certain goods, sales to registered dealers in certain circumstances and other....
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....ately after each sale is effected though, for the facility of computation and payment of tax, provision has been made for the filing of returns at the expiry of each quarter. Secondly, rates of income-tax vary in accordance with the amount of income whereas the amount of sales tax does not vary on the amount of taxable turnover. The result is that no one can be certain of what income-tax he has to pay at least until the accounting year expires. But a dealer can always be certain of what sales tax he has to pay as soon as he effects the sale. At the time when a dealer prepares his return, he only adds up the sales effected by him during the period in question. The assessment is a process whereby a prescribed authority similarly adds up the a....
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.... before the return is filed. Under sub-section (4) of section 14, however, the amount of sales tax assessed under section 13 less the amount already paid by the dealer, is payable by a date specified in a notice issued by the Commissioner for payment. No amount which remains unascertained and no amount which is not legally recoverable by the claimant or creditor can be said to be payable. Until final assessment order has been passed declaring the amount that a dealer must pay as tax in excess of the liability admitted by him in his return no one can be certain of the figure. Hence the amount becomes ascertained only when the final assessing authority quantifies it. That amount becomes legally recoverable only when a notice is issued by the ....