LALAN KUMAR SINGH SON OF RAM BALAK SINGH Vs. STATE OF BIHAR, THROUGH ITS CHIEF SECRETARY, GOVERNMENT OF BIHAR, PATNA

JUDGEMENT

(1.) The challenge in the present writ petition is to the Section 7 of the Bihar Value Added Tax (Amendment) Act, 2016 (Bihar Act No.10 of 2016) whereby Section 41 of Bihar Value Added Tax Act, 2005 (for short "the Act") was amended so as to substitute words, "five percent" used in sub section (1) of Section 41 to be read as "eight percent".

(2.) Learned counsel for the petitioners raised three fold arguments; (i) that the agreements in pursuance of which the petitioners executed works contract contemplated 5% deduction of the tax, therefore, the amendment in the statute will not be applicable in respect of the agreements already entered into between the parties; (ii) that the revised deduction @ 8% will not be applicable in respect of works already completed; and (iii) that the petitioners are entitled to deduction as is permissible in terms of Rule 29 of the Bihar Value Added Tax Rules, 2005 (for short, "the Rules").

(3.) We have heard learned counsel for the petitioners and find no merit in the present application.