MONSANTO INDIA LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE present application has been filed by the petitioner for quashing the demand notice dated 16.5.2002 issued by the Deputy Commissioner of Commercial Taxes, Patliputra Circle, Patna, asking it to pay tax at the rate of 8% plus 1% additional tax as it is dealing in seeds. The aforesaid order has been passed by the authorities on the basis of a direction received from the Commissioner, Commercial Taxes.

(2.) IT is admitted fact that the petitioner is an assessee under the Bihar Finance Act. The dispute is as to the rate of sales tax on the maize seeds. According to the petitioner, it is liable to pay sales tax at the rate of 4% only and it has been paying the tax at the same rate for the last several years.

(3.) THE learned counsel appearing for the petitioner raised two points. Firstly, he submitted that the assessing authority has not applied its mind in passing the order and he has passed the order on the dictate or the direction of the Commissioner of Commercial Taxes -cum -Secretary, Bihar, Patna, and secondly he submitted that the tax on the maize seeds is payable at the rate of 4% only and not as asserted on behalf of the State.