BHAGWATI COKE INDUSTRIES PVT LTD Vs. STATE OF BIHAR THROUGH PRINCIPAL SECRETARY CUM COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) Challenge in this writ petition is made to an order dated 09.01.2014 passed by the Assessing Officer imposing tax on the petitioner under the VAT Act by treating the price of coal to be of Rs.7000/- per Metric Ton instead of assessing the tax based on the actual sale price and the price of coal indicated in the Sale order @ Rs.1740/- per M.T., this petition has been filed.

(2.) Fact in brief which are relevant for deciding the issue in question goes to show that the petitioner is engaged in manufacture of soft coke/ special smokeless fuel from coal and for the said purpose is allowed linkage for assured supply by the Coal India Limited. As per the distribution policy of Coal India the petitioner entered into a Fuel Supply Agreement with the Central Coalfields Limited for supply of coal and the Central Coalfields Limited used to supply coal from various units and the petitioner used to transport the same to its establishment at Aurangabad.

(3.) Vide sale order Annexure-2 dated 21.11.2013 the petitioner had purchased 627 M.T. of coal @ Rs.1740/- per M.T. total price was fixed at Rs.13,85,757/-. The petitioner was supplied the coal from Dhori area of Central Coalfields Limited situated in the State of Jharkhand and after obtaining necessary documents like the sale letter, coal purchase agreement, the sale order Annexure-2, the tax invoice Annexure-3, payment of duty in the State of Jharkhand, vide Form D under the VAT Act of the Government of Jharkhand entered the State of Bihar, at the check-post the vehicle was stopped and after enquiry it was found that in accordance with a circular issued by the Govt. of Bihar the minimum price of coal is fixed at Rs.7000/- per M.T. and the coal shown in the invoice and other documents were below the minimum price of coal indicated in the circular dated 18.07.2013 bearing No. 2570. Accordingly, on this count proceedings were initiated and the impugned action taken, after determining the price of coal as indicated in the Circular dated 18.07.2013, the petitioner filed the writ petition.