NAGENDRA PRASAD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner in all the four cases is one and the same and the points involved in all the cases being also the same, they have been heard together and are being disposed of by this common judgment.

(2.) The petitioner is engaged in the business of manufacture and sale of country liquor. The matter relates to the assessment under the provisions of the Bihar Finance Act (hereinafter referred to as the Act) for the two assessment years, i.e. 1999-2000 and 2000-2001. He has challenged the order dated 25.2.2003 passed in all the four cases which has been annexed as Annexure-7 to all the writ applications whereby the Joint Commissioner of Commercial Taxes (Admn.), Patna Division, Patna in exercise of power under Section 46(4) of the Act while remanding the matter to the assessing authority has observed that the excise duty is component of sale price and the sale price cannot be segregated into different components but discount is not permissible or allowable on the excise duty, a component of the sale price.

(3.) The necessary facts for disposal of the aforesaid writ applications are that the petitioner has been granted licence to manufacture and sale country liquor at places Buxar, Ara, Sasaram, Mohania, Bikramganj & Bihia. For the relevant assessment years, he filed the returns showing total turn over and paid the taxes under the provisions of the Act. The assessing authority made assessment under Section 17(3) of the Act by order dated 18.11.2000 in CWJC Nos. 4959 and 5165 of 2003 and by order dated 14.6.2002 and 10.4.2002 in CWJC Nos. 5527 and 5528 of 2003 respectively. The assessing authority did not allow the claim of cash discount with reference to excise duty being a part of the sale price and other claims and brought them to the tax under the provisions of the Act. Copies of the said orders have been annexed as Annexure-1 to the writ applications. The petitioner filed an appeal before the Joint Commissioner of Commercial Taxes (Appeals) who after having considered the question of discount with reference to the definition of sale price as defined under Section 2(u) of the Act read with Explanation II thereunder and remanded the matter to the assessing authority to consider the question afresh by order dated 15.3.2001 passed in all the cases. The said orders have been annexed as Annexure-2 to the writ applications. Thereafter the assessing authority considered the question and by order dated 31.7.2001, annexed as Annexure 3 to the writ applications, allowed the trade discount from the sale price as claimed by the petitioner.