SHIVAM ENTERPRISES Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioners in all the thirteen writapplications are producing soft coke/domestic fuel. Admittedly, they used to purchase raw materials for making the afore said product from the State of Jharkhand and other States. It is an admitted position that under the Industrial Incentive Policy, 1995, they have been granted exemption from payment of tax on sale of their finished products i.e. soft coke, for a period of ten years.

(2.) THE petitioners have filed the present writ applications challenging the provisions of Ordinance No.1 of 2001 (Bihar Tax on Entry of Goods into Local Area for Consumption, Use or Sale Therein Amendment Ordinance, 2001 (herein after referred to as the Ordinance) as well as the notification dated 25th July, 2001, whereby the coal has also been included as one of the scheduled articles under the aforesaid Ordinance and is liable to Entry tax at the rate of 4%.

(3.) ACCORDING to the petitioners, they are not liable to pay Entry tax as the Entry tax levied upon them is not adjusted towards the sales tax by reason of the fact that they are exempted from payment of sales tax in terms of the Industrial Incentive Policy, 1995, on finished goods.