SPIC PHI SEEDS LTD Vs. STATE OF BIHAR

JUDGEMENT

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

(2.) All the petitioners are registered dealers under the Bihar Finance Act, 1981 (hereinafter referred to as "the Act") to sell specified seeds including maize seeds. The point for consideration in this case is as to whether the maize seed is to be levied tax at 4 per cent by treating as cereals under entry No. 12 of the notification dated December 26, 1977, annexure III issued under Section 12 of the Act containing the rate of tax leviable on sale of goods or at 8 per cent as unspecified goods, being general rate of tax as provided under Section 12 of the Act.

(3.) The petitioners have challenged the assessment orders as well as demands made from them charging sales tax at 8 per cent on maize seeds. Their assertion is that earlier it was charged at 4 per cent by treating as cereals but by the assessment orders impugned they have been charged at 8 per cent. The assertion of some of the petitioners is that they have been differently charged as in some divisions they have been still charged at 4 per cent not 8 per cent. Their further assertion is that the definition of cereals as given under item No. 12 of Annexure III is an exclusive provision and it includes maize in all of its forms and as such it will cover the maize seeds as well. Thus, the demand of tax at 8 per cent is impermissible in law. The said demand has been made in pursuance of the instructions issued by the Commissioner of Commercial Taxes dated May 7, 2002, a copy of which has been annexed as annexure 3 to C.W.J.C. No. 459 of 2005. It is stated that on challenge the said direction has already been quashed by this Court but even still the authorities are influenced by the said direction wherein a rate of tax for maize seed has been prescribed as 8 per cent.