SHEWARAM HIRWANI Vs. STATE OF BIHAR

JUDGEMENT

(1.) The main grievance which has been made on behalf of the petitioners in this writ application is that by introducing Rule 13-A of the Bihar Sales Tax Rules, 1983 (hereinafter referred to as "the Rules"), an arbitrary procedure has been introduced for ascertainment of percentage of cost incurred as labour charges in different types of works contract. According to the petitioners, what amount a contractor has spent over labour charges has to be determined with reference to individual contract.

(2.) A Bench of this Court in the case of Jamshedpur Contractors' Association v. State of Bihar [1989] 75 STC 132 ; (1989) BBCJ 600, considered the validity of Rule 13-A aforesaid and observed :

(3.) In view of the aforesaid judgment, now the assessment proceeding which is pending in the present case has to proceed ignoring Rule 13-A which has been declared as ultra vires and has to be completed in the light of the judgment aforesaid, read with the judgment of the Supreme Court in the case of Builders Association of India v. Union of India [1989] 73 STC 370 ; AIR 1989 SC 1371.