(1.) THE Appellant issued a tender notice and thereby invited tender for supply of paper. in the tender notice it was mentioned that sales tax would be deducted from the bills of the supplier as per Bihar Government Sales Tax Rules. The writ petitioner -respondent, who carries on business outside the State of Bihar, gave an offer in response to the said tender. Subsequent thereto negotiations were held between the appellant and the writ petitioner -respondent. The offer given by the writ petitioner -respondent and subsequent negotiations resulted in issuance of an order by the appellant in favour of the writ petitioner -respondent. The said order mentioned that C -Form and road permit will be provided to the supplier by the Board by 13th January, 2001. There is no dispute that as and by way of earnest the writ petitioner -respondent submitted rupees two lacs to the appellant in connection with the said order.
(2.) THE appellant did not provide C -Form and road permit to the writ petitioner -respondent by 13th January, 2001 or at all and instead by a letter dated 16th January, 2001, called upon the writ petitioner -respondent to state how the said clause, as mentioned above, has been inserted in contract and it was insinuated that the same had been inserted as a result of fraud perpetuated by the writ petitioner -respondent. In its show cause the writ petitioner -respondent explained that the same was inserted after negotiation by the parties and no fraud had been played by it.
(3.) IN the writ petition it was contended by the appellant that C -Form can only be provided to a supplier by a dealer registered as such under the Bihar Finance Act, 1981, and since the appellant is not a registered dealer it could not supply C -Forms but despite that, by machination on the part of the writ petitioner -respondent, the obligation to supply C -Form was imposed upon the appellant. It was stated that the writ petitioner -respondent thereby played fraud upon by the appellant.