SARASWATI INDUSTRIAL SYNDICATE LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The present writ application has been filed by the petitioner for quashing the order dated 10.5.90 passed by the respondent No. 3 under Section 17 (5) of the Bihar Finance Act for the assessment year 1.4.1984 to 30.4.1990 as well as for quashing the notice making demand of Rs. 2,51,084.24 on the basis of the assessment order.

(2.) The factual position is like this. The petitioner has a registered office at -Yamuna Nagar at Ambala (Haryana) and is engaged in carrying on the business of designing engineering and supplying of equipments including boilers for thermal power plant. One of the units of the petitioner has its office at Kolkata. There was an agreement between the petitioner and the Bihar State Electricity Board for supply of design, manufacture, erection and commission of one boiler at its Karbigahiya Thermal Power Station through Purchase Order dated 7.3.84 for Rs. 2,00,28, 75200. The cost was inclusive of erection, commissioning, civil designing and engineering works for Rs. 19,27,000/-

(3.) In terms of the agreement, boiler was supplied to the Board and as the transaction was inter-state sale the matter was covered under Section 3A of the Central Sales Tax Act. There is no dispute so far the supply of boiler is concerned for that already tax has been paid by the petitioner in terms of the provision of Central Sales Tax Act. The controversy is only with regard to the amount regarding commissioning, civil designing and engineering worth Rs. 19,27,000/- which the assessee authority has treated as work contract and on that basis assessed the amount and imposed penalty that the firm was not registered under the provisions of Bihar Finance Act.