BIHAR FOUNDRY AND CASTINGSLTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner applied for certificate of exemption from payment of sales tax on purchase of raw materials under the State Government's Notification No. S.O. 95. The Sales Tax Department of the State rejected the petitioner's prayer for exemption. The petitioner, thereafter, filed C. W.J.C. No. 2490 of 1995 (R). This Court allowed the said writ application vide judgment dated 27.9.1995, quashed the Notification No. S.O. 95 and declared that the petitioner is entitled to sales tax exemption on purchase of raw material. Pursuant to the said judgment of this Court the petitioner made an application on the basis of which the benefit of exemption from payment of sales tax was granted to it.

(2.) The Government of Bihar filed a Special Leave Petition against the aforementioned judgment of this Court before the Supreme Court, in which an interim order dated 31.3.1997 staying the operation of the said judgment of this Court, was passed by the Apex Court.

(3.) After the Apex Court passed the aforementioned interim order, the Joint Commissioner, Commercial Taxes (Adm.), Jamshedpur, vide his letter dated 31.12.1997 asked the TELCO Ltd. not to sell scraps of other raw materials to the petitioner without charging full sales tax. The TELCO Ltd., accordingly, sent a letter dated 2.1.1998 to the petitioner informing it that exemption from payment of sales tax granted to it has been withdrawn by the Sales Tax Department and it "will raise a debit note on you for the past transactions and bill with full tax for the current sale". Vide letter dated 7.1.1998 the Deputy Commissioner Commercial Taxes, Ranchi, also informed the petitioner that as the judgment of this Court under which exemption from payment of sales tax was granted to it has been stayed by the Hon'ble Supreme Court, its application seeking exemption from tax is rejected. Being aggrieved the petitioner filed a writ application, being C.W.J.C. No. 153 of 1998 (R), which was dismissed as withdrawn by the Division Bench of this Court on 21.1.1998 by the following order: Heard Mr. K. Roy, learned Counsel for the petitioner and learned S. C. I for the State. In Course of the argument, learned Counsel for the petitioner prayed for withdrawing this writ application saying that he will approach the Hon'ble Supreme Court for necessary clarification. He may do so.