STATE OF BIHAR Vs. CENTRAL BOARD OF TAXES

JUDGEMENT

(1.) YESTERDAY when this matter was called, one aspect was clear that the State of Bihar, was moving this writ petition through the Department of Excise and Prohibition but without the State making itself a party. The party respondent is the Union of India and its constituents. The issue is whether the State of Bihar is amenable to answer the notice on the payment of income tax of certain relevant years of a turnover which may have been generated as income consequentially, and thus attracting tax under the IncomeTax Act, 1961. Liquor in the State of Bihar is sold through a licensee selected after a public auction.

(2.) IN effect, the case was between the State of Bihar and the Union of India. Yesterday a request was made to the court by the learned counsel for the petitioner that the Advocate -General would appear in the matter, on behalf of the State of Bihar, and the matter be adjourned. An adjournment was granted.

(3.) LEARNED counsel appearing on behalf of the Union of India informed the court that the decision of the Patna High Court became the subject matter of a Special Leave Petition, filled by the State of Bihar, being S.L.P. No. 1522 of 1994. It was dismissed by the Supreme Court on 7th November, 1994.