HAMID HUSAIN Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioners have filed the present writ application for quashing the notification dated 10-2-1999 issued by the Excise Commissioner on behalf of the Member Board of Revenue fixing the price of the liquor including 25% sales tax charged on the price of wholesale liquor fixed earlier. A copy of the said notification has been annexed as Annexure 6 A to the writ application.

(2.) The point for consideration in this case is as to whether the safes tax under the provisions of the Bihar Finance Act shall be levied on the cost price of the liquor or on the wholesale price including excise duty and sacheting cost.

(3.) Admitted facts are that the petitioners are the retail vendors of the country liquor and they have been granted exclusive privilege as well as licence under Section 22 of the Bihar Excise Act for the years 1997-2000. Under the provision of the Act and the terms and conditions of the licence the retail vendors of country liquor are bound to lift the minimum guarantee quota of country liquor fixed with regard to their shops from the warehouse. Section 22A of the Bihar Excise Act confers power on the State Government to fix the cost price of country liquor includes the price of the spirit, transportation charges Warehouse maintenance charges, taxes, if any, and other charges such as bottling, packing etc. and dividend. The said power to exercised on behalf of the State Government by the Member, Board of Revenue. The retail vendor on the payment of fixed price of the country liquor obtains country liquor from the warehouse for the purpose of sale. Earlier sales tax was not imposed on the country liquor etc. The State Government by notification dated 21-5-1997 (Annexure 3) to the writ application) imposed sales tax at the rate of 25% on the country liquor at the first point of sale. The said notification was challenged before the Court by persons dealing in liquor but the said challenge was rejected by this Court. After issuance of the aforesaid notification the Commissioner with the approval of the Member, Board of Revenue vide order dated 11-2-1999 (Annexure 6-A) revised the wholesale price of the country liquor and included 25% excise duty in the total price of the country liquor. The said notification was given retrospective effect, i.e. with effect from 21-5-1997. Thus, according to the notification the retail dealers were liable to pay 25% of the sales tax on the wholesale price of the country liquor at the first point of sale to the manufacturer cum wholesale dealer of the country liquor. The petitioners challenged the aforesaid notification before the Member, Board of Revenue on the ground that the sales tax should be realised only on the cost price of the liquor and excise duty etc. should not be included, The Member, Board of Revenue rejected the same vide order dated 11-8-1999, vide Annexure 6 to the writ application and thereafter the present writ application has been filed.