HINDUSTAN LEVER LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition has been filed for quashing the order dated January 10, 2002 passed by the Commercial Taxes Tribunal, Bihar, Patna, in Revision Case No. 24 of 2001, dismissing the revision application against the order dated January 24, 2001, passed by the Commissioner of Commercial Taxes, Bihar, Patna, in exercise of the suo motu power of revision, by which the learned Commissioner has upheld the order dated May 27, 2000 passed by the Assistant Commissioner of Commercial Taxes, Patna city (West) circle, Patna city, under the provisions of the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993 (hereinafter referred to as "the Act"), read with the provisions of Section 17(2) of the Bihar Finance Act, 1981.

(2.) The period for which the liability has been determined under the Act is October 15, 1998 to March 31, 1999. The tax has been determined as Rs. 59,16,941.51 and Rs. 2,020 has been added as penalty under Section 16(8) of the Bihar Finance Act, read with Section 8 of the Act. Thus, the total liability of the entry tax determined against the petitioners including the penalty for the relevant period is Rs. 59,18,962.

(3.) The petitioner No. 1 is a company registered under the Companies Act and its head office is at Bombay and regional office at Kolkata. It is engaged in carrying on business of selling and distributing its products in Bihar through its carrying and forwarding agents (for short, "C and F agents") set up at different places in the State of Bihar, namely, Patna, Raxaul, etc. It also engages C and F agents through individual contracts with each party. Petitioner No. 2 is a shareholder of petitioner No. 1 and is interested in the business of the petitioner-company.