NEO CARBON PVT LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE question that arises for consideration in these two cases is whether it is permissible to claim adjustment of Central Sales Tax (CST) payable on sales of goods in course of Inter State Trade against any Input Tax Credit accruing under Section 16 of the Bihar Value Added Tax Act, 2005. Page 2018

(2.) THE relevant facts in the two cases are very brief and simple. In C.W.J.C. No. 1114 of 2006 the petitioner company buys Raw Petroleum Coke, a waste product from Barauni Oil Refinery. On the purchase it pays tax as provided under Section 14 of the VAT Act @ 4%, as Raw Petroleum Coke falls under Schedule 3 of the Act. It manufactures Calcinite Petroleum Coke and sells its produce partly to buyers in Bihar but mainly to HINDALCO, a company situate at Renukut in Uttar Pradesh. THE sale to HINDALCO constitutes inter State sale and on those sales the petitioner is liable to pay C.S.T. @ 4%.

(3.) MUCH clarity and light on the question came from Mr. K.N. Jain who by a previous order was appointed amicus curiae and was requested to assist the court. He took a stand contrary to the petitioners and referred to the different provisions of the Act and the Rules to show that the petitioners' claim was quite untenable.