I T C LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) The points involved in both the writ applications are one and the same and as such they have been heard together and are being disposed of by a common judgment.

(2.) The petitioners In both the cases have challenged the validity of the amended provision of Rule 45 (b) of the Bihar Sales Tax Rules, 1983 (hereinafter referred to as the Rules) as amended by the Notification No. SO 43, dated 1st February, 2000.

(3.) The petitioner No. 1 in CWJC No. 8582 of 2001 is a Public Limited Company and is engaged in manufacturing cigarettes etc. One of its cigarette factories is located at Munger in the State of Bihar. It is registered as a dealer under the Bihar Finance Act (hereinafter referred to as the Act) and under the Central Sales Tax Act. The raw materials and other inputs for manufacture of cigarettes including packing materials are purchased outside the State of Bihar and brought in the factory at Munger in course of inter state trade and commerce or by way of stock transfers. The cigarettes and tobacco products are all exempted from the levy of sales tax. The paper, paper board and other inputs required for making shells and slides/hinge lid type packets in flattened form at the said factory at Munger are entirely consumed by the Company for packing of its various brands of cigarettes. The portion of the said shells and slides/hinge lids made at Munger factory are consumed for packing of cigarettes manufactured threat and substantial quantity thereof are transferred to other cigarette factories of the Company and that of its job workers all located outside the State of Bihar by way of stock transfer. The Company is not liable to pay sales tax on such stock transfer. The Company however requires Form XXVIIIB or exemption from use of such Form under Rule 42(7) of the Rules for inter State movement of the said packaging materials to and fro from its factory at Munger. The petitioner is liable to pay amount of sales tax only on sale of its waste products.