LAWS(PAT)-2003-9-8

MAPRA LABORATORIES PVT LTD Vs. STATE OF BIHAR

Decided On September 01, 2003
MAPRA LABORATORIES PVT.LTD. Appellant
V/S
STATE OF BIHAR Respondents

JUDGEMENT

(1.) The petitioner has filed the present writ application for quashing the assessment order dated January 23, 2003, passed, under Section 17 of the Bihar Finance Act, 1981 (hereinafter referred to as "the Act") and the demand notice issued pursuant, to the said order for the assessment year 2001-2002, so far as it relates to the inclusion of Rs. 2,95,88,480 in the taxable turnover of the petitioner for the purposes of imposing tax under the Act, which was claimed by the petitioner as a trade discount.

(2.) The petitioner has also made several other prayers in the writ application but during the course of argument the case was confined only to the aforesaid matter. Thus, the only question for consideration is as to whether the quantitative discount claimed by the petitioner as the trade discount is to be included in its taxable turnover or not for the purpose of assessment under the provisions of the Act.

(3.) The factual matrix is that the petitioner is a private limited company having its head office at Mumbai and branches at different places including Patna. It is engaged in manufacturing and sale of medicines. It is registered under the Act and is paying sales tax. In the past, it claimed quantitative discount as trade discount and that had been allowed with respect to the previous assessment years, but for the assessment year in question, i.e., 2001-2002 the respondent-authority disallowed the aforesaid quantitative discount and included the same in taxable turnover.