TaxTMI 
TaxTMI 
2002 (11) TMI 756
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....ng dealers as well as for a direction to the respondent-authorities to refund to the petitioner the amount of sales tax collected unauthorisedly. 2.. The admitted fact is that the petitioner-firm is engaged in manufacturing bakery products from maida, which is the raw material. The petitioner is a registered dealer under the provisions of the Bihar Finance Act. It was also registered as a small-scale industrial unit in 1987. The State Government with a view to accelerate the industrial production in the State issued Industrial Policy giving benefits under different heads including sales tax incentive to the units since 1986. The petitioner-unit commenced production on November 12, 1987 and availed benefit of set off of sales tax under th....
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....challenged the aforesaid judgment before the apex Court and the apex Court upheld the judgment of this Court in the State of Bihar v. Suprabhat Steel Ltd. reported in [1999] 112 STC 258. The apex Court held that even the old industrial units, which had commenced production prior to April 1, 1993, would be entitled to the facility of sales tax exemption as contemplated in terms of clause 10.4(i)(b) of the Industrial Policy, 1993. The petitioner also filed a writ application in this court being C.W.J.C. No. 6816 of 1997, which was disposed of in terms of the order of the apex Court, a copy of which is appended as annexure "4" to the writ petition. The petitioner approached the sales tax authority for grant of exemption which it was entitled i....
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....fore the selling dealers on the basis of the declaration form and the amount should be refunded by the selling dealers to the purchasing dealers. In case the assessment of the selling dealers has already been completed then the selling dealer can apply for review of the concluded assessment to the extent of the claim of refund before the respective assessing officer and in that case the selling dealers should be either granted a demand notice showing excess payment of tax or its liability for tax would be reduced to the extent of the amount refunded to the purchasing dealers. 6.. The narration of the facts stated above shows that the petitioner-unit is entitled to the exemption from payment of sales tax on the purchase of raw materials f....
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.... act fairly and its action should be above board and it should not give an impression that its decision or action has been taken with a view to harass the persons covered by the said action and decision. We are constrained to observe that the impugned circular in this case is arbitrary as the said procedure provided for refund of the money is cumbersome and dilatory one. There is no provision in circular to meet a situation where the selling dealer refused to refund the amount of tax collected by it from the purchasing dealer. The selling dealer is also put to harassment as he is required to file an application for review of the assessment in case the assessment has been completed. Such cumbersome and arbitrary procedure, in our view, sh....