MARICO INDUSTRIES LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The sole petitioner in both the cases is the same and a registered company under the Companies Act and it is engaged in sale/marketing of consumer products including edible Parachute Coconut Oil and it also manufactures other edible oil under different brands. It is a registered dealer under the provisions of the Bihar Finance Act, 1981 and the Central Sales Tax Act, 1956 (hereinafter referred to as the Bihar Act and Central Act respectively).

(2.) The petitioner has filed the writ applications for quashing the assessment order dated 11.2.2003 passed by the Assistant Commissioner, Commercial Taxes, Patna South Circle, Patna under Section 17(3) of the Bihar Act for the assessment years 2000-2001 and 2001-2002 by which the Parachute Coconut Oil, the product sold by the petitioner has been charged the sales tax at the rate of 12% in terms of Entry No. 245 instead of 9% as provided under Entry No. 63 and the orders dated 31.8.2003 and 1.7.2003 passed by the Commissioner of Commercial Taxes, Bihar Patna upholding the said order of the Assessing Officer as well as the common order dated 1.11.2004 passed by the Commercial Taxes Tribunal, Bihar, Patna in revisions filed by the petitioner upholding the aforesaid order of the Assessing Authority.

(3.) Section 12 of the Bihar Act contains a provision with regard to rate of tax and it provides that the sales tax or purchase tax payable by a dealer under Section 3 or 4 shall be levied at the rate of eight percentum of his taxable turnover. However, proviso to Sub-section (1) of the said Section gives discretion to the State Government to lower down or to enhance the rate of tax not below 2% in respect of lowering the rate and not more than twenty five percentum in case of imposing a higher rate of tax.