ANIL HARD COKE INDUSTRIES Vs. STATE OF BIHAR

JUDGEMENT

(1.) C.W.J.C. Nos. 1460, 1462, 1463, 1465 and 1473 of 1986 (R) as well as C. W. J. C. Nos. 83, 86, 88 and 340 of 1987 (R) constitute one batch of cases, which shall hereinafter be referred to as "the first batch of cases". The second batch of cases comprises of C. W. J. C. Nos. 308 to 319 of 1988 (R). Mr. B. P. Rajgarhia, learned Counsel, has appeared and argued for the writ petitioners in the first batch of cases; whereas out of the second batch of cases, Dr. Pal has appeared for the petitioner in C. W. J. C. No. 308 of 1988 (R) and his argument has been adopted by Mr. L. K. Bajla, learned Counsel, appearing for the petitioners in rest of the second batch of cases, namely, C. W. J. C. Nos. 309 to 319 of 1988 (R).

(2.) The primary question of law that arises for determination in all these cases is the same as to whether the term "coke", be it hard coke or any other form of coke, can be said to fall within the ambit of the term "coal" as defined in Section 14(ia) of the Central Sales Tax Act, 1956 (hereinafter to be referred to as "the Central Act") as amended by Act No. 16 of 1972, and as to what would be the cumulative effect of the provisions of Section 14(ia) and Section 15 read with Section 12(2) of the Bihar Finance Act, 1981. The other ancillary question that will then fall for consideration is as to the effect of Section 11 of the Bihar Finance Act, 1981 and Rule 45 of the Bihar Sales Tax Rules, 1983.

(3.) The first batch of cases has been filed by different registered dealers, both under the State Act and under the Central Act and in all these applications, the legality and validity of the notice, as contained in annexure-2, is under challenge. The notice as incorporated in annexure-2 in each of the cases has been issued by the Deputy Commissioner, Commercial Taxes, Hazaribagh Circle', drawing the attention of and intimating to all the dealers in hard coke within the Hazaribagh Circle that according to the decision of the State Government, coal and coke were two different and distinct goods for the purpose of taxation under the Sales Tax Act. All the sales of hard coke within the State of Bihar shall be subjected to sales tax at the rate of 4 per cent apart from the sale of coal and on the inter-State trade the tax will be 4 per cent if form C is given or else the tax will be at 8 per cent and if the dealers do not pay the sales tax on the sale of hard coke, there will be great difficulty in issuing any road permit in form 28B to them and that, therefore, they must clear off the tax calculated under the rules mentioned therein before any road permit is issued to them.