BIHAR ALLOY STEELS LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS writ application has been filed for quashing orders dated 12. 1. 1996, issued by the Deputy Commissioner of commercial Taxes, Hazaribagh, contained in annexures 4, 5 and 6 whereby purporting to act under Section 7a of the bihar Electricity Duty Act, 1948 (hereinafter to be referred to as 'the Act') bank accounts of the petitioner-company in three banks viz. United Commercial Bank, ranchi, State Bank of India, Ranchi and bank of India, Ranchi, have been attached for payment of the amount of surcharge under Section 3a of the Act. Further prayer has been made for a declaration that the petitioners are not liable to pay amount of surcharge under Section 3a of the Act.

(2.) SHORT facts are that petitioner no. 1 is a company incorporated under the provisions of the Indian Companies Act having its registered office in the. district of hazaribagh and petitioner no. 2 is its deputy Manager (Accounts ). The petitioner company is manufacturer of alloys, tool and special steel and it purchases electricity from Damodar Valley Corporation (hereinafter to be referred to as 'dvc'), which is a licensee within the meaning of section 2 (d) of the Act for the purpose of its industry under an agreement executed between DVC being licensee and the petitioner-company as consumer. According to clause 17 of the agreement, the petitioner-company, which was a consumer, was liable to pay electricity duty (hereinafter to be referred to as 'duty') to the government Bihar on the electricity purchased by it from the DVC. The petitioner company under ill advice applied for its registration as an assessee under the provisions of the bihar Electricity Duty Rules, 1949 (hereinafter to be referred to as 'the Rules')and it was registered as an assessee. Later on, the oetitioner company having realised its mistcake filed an application before the respondent-Deputy Commissioner, commercial Taxes, for cancellation of the registration.

(3.) THE petitioner-company received a notice issued by the respondent-Deputy commissioner, Commercial Taxes, in relation to assessment years 1990-91 to 1994-95 fixing the date of hearing as 29. 12. 1995 for the purposes of imposing surcharge under the provisions of Section 3a of the act. Pursuant to the said notice, the petitioner-Company appeared before the authority concerned on the said date and filed a time petition. The petitionercompany's representative was made to understand that the case shall be adjourned to some other date. Subsequently, an objection was filed on behalf of the company before, the authority denying its liability to pay the amount of surcharge. Thereafter, the petitioner-company was intimated by the Branch Managers of United Commercial bank, Ranchi, State Bank of India, Ranchi and Bank of India, Ranchi, that they have received orders of attachment, issued by the respondent-Deputy Commissioner, commercial Taxes, Hazaribagh, contained in annexures 4, 5 and 6, respectively, stating therein that there is a liability on account of surcharge against the petitioner-company to the tune of Rs, 1, 17, 64, 355. 56 paise, therefore, the aforesaid banks were directed to deposit the said amount in the account of the respondent-Deputy Commissioner, commercial Taxes, Hazaribagh. Pursuant to the said orders of attachment, the state Bank of India, Ranchi Branch, was compelled to issue a draft of Rs. 20,04,361. 81 paise in favour of the respondent-Deputy commissioner, Commercial taxes, out of the account of the petitioner-company with the said bank and the same was made over to the respondent-Deputy commissioner. This action of the respondent-Deputy commissioner necessitated filing of the present writ application.