STATE OF BIHAR Vs. BIHAR CHAMBER OF COMMERCE

JUDGEMENT

(1.) Leave granted.

(2.) The Bihar Legislature enacted the Bihar Tax on Entry of Goods into Local Areas for Consumption. Use or Sale Therein Act, 1993 providing for levy of tax on entry of scheduled goods into a local area for consumption, use or sale therein at a rate, not exceeding five per cent, as may be specified by the State Government. The goods mentioned in the Schedule are (i) motor vehicles, (ii) tobacco products [excluding beeris], (iii) Indian made foreign liquor, (iv) vegetable and hydrogenated oils, (v) cements and (vi) crude oil. The Act replaced Bihar Ordinance No. 19 of 1993. [Indeed, the said Ordinance was preceded by yet another Ordinance.] The expression "Local Areas" is defined in clause (f) of Section 2 to mean the areas within the limits of a (i) Municipal Corporation, (ii) Municipality, (iii) Notified Area Committee, (iv) Cantonment Board, (v) Town Board, (vi) Mines Board, (vii) Municipal Board, (viii) Gram Panchayat and (ix) any other local authority by whatever nomenclature called constituted or continued under any law for the time being in force.

(3.) Section 3 is the charging section. The levy is upon the entry of scheduled goods into a local area for consumption, use or sale therein. The proviso to sub-section (3) empowers the Government to specify different rates of tax for different goods mentioned in the Schedule. Sub-Section (2) of Section 3 says that the tax under the Act shall be paid by every dealer liable to pay tax under the Bihar Finance Act, 1981 (Sales Tax Act). Section 5 provides for registration of dealers under the Act while Section 6 empowers the State Government to exempt from levy of tax any class of dealers, persons or importers, subject to such conditions and restrictions as may be imposed in that behalf. Section 7 provides for punishment in case of contravention of the provisions of the Act. Section 8 says that the machinery under the Bihar Finance Act, 1981 shall be the machinery for assessment and collection of the tax. Section 9 confers the rule making power upon the State Government.