HOECHST PHARMACEUTICAL LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) These two writ applications have been heard one after the other and are being disposed of by a common judgment as the main points involved are basically the same.

(2.) In both these writ applications Section 5 of the Bihar Sales Tax Third Ordinance, 1980 (Ordinance No. 115 of 1980) and Section 5 of the Bihar FinanceAct, 1981, are under challenge. So also the notifications issued under the aforesaid Ordinance. The impugned provision levies a surcharge on sales or purchase tax payable by every dealer whose gross turnover during a year exceeds Rs. 5,00,000. The surcharge is not to exceed 10 per centum of the total amount of tax payable by the dealer, as may be fixed by the State Government by a notification. Annexure 1 to C.W.J.C. No. 1788 of 1981 is the notification enforcing the impugned provisions of the Sales Tax Ordinance. Annexure 2 is notification fixing the rate of surcharge at 10 per centum.

(3.) The Ordinance aforesaid was followed by successive Ordinances and now the Bihar Finance Act, 1981, has been enacted. The provisions are for the present purposes, the same. Reference need only be made to the provisions of the Ordinance. Whatever argument or decision is applicable to the Ordinance shall apply to the Bihar Finance Act, 1981, as well.