TaxTMI 
TaxTMI 
1989 (9) TMI 361
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....reement with their respective principals for execution of the works contract prior to the coming into force of the Bihar Finance Act, 1984, i.e., prior to 1st April, 1984, no sales tax is payable in relation to the supplies made under the said contract, and in any event, they are not liable to pay any tax whatsoever in view of section 64-A of the Sale of Goods Act, 1930. 4.. In C.W.J.C. No. 2655 of 1988 (R), a counter-affidavit has been filed on behalf of the South Eastern Railway Administration, wherein in paragraph 9 thereof, it has categorically been stated that recovery had been made from the outstanding bill of the petitioner thereto only after 1st April, 1984. 5.. Before proceeding further, it may be mentioned that the Supreme Court....
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....for the sale or purchase of such goods without stipulation as to the payment of tax where tax was not chargeable at the time of the making of the contract, or for the sale or purchase of such goods taxpaid where tax was chargeable at that time,- (a) if such imposition or increase so takes effect that the tax or increased tax, as the case may be, or any part of such tax is paid or is payable, the seller may add so much to the contract price as will be equivalent to the amount paid or payable in respect of such tax or increase of tax, and he shall be entitled to be paid and to sue for and recover such addition; and (b) if such decrease or remission so takes effect that the decreased tax only, or no tax, as the case may be, is paid or is pay....
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..... 13.. In terms of the provisions of the Bihar Finance Act, 1981, and the Rules framed thereunder, a registered dealer is entitled to recover the tax from his buyer and in terms of section 64-A of the Sale of Goods Act, from its principal unless there exists a contract to the contrary. 14.. The right of such a dealer to reimburse himself, therefore, is a matter of contract. Section 64-A of the Sale of Goods Act merely thus provides for an implied condition of a contract relating to or involving supply of goods. 15.. Such a contract/implied contract can be enforced in accordance with the provisions of the said contract only, namely, either by taking recourse to the arbitration agreement entered into by and between the parties thereto if t....