ROAD, KOLKATA Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD learned counsel for the petitioner and learned counsel for the respondents.

(2.) PETITIONER in both the writ petitions has raised a grievance that respondent no. 2, Bhagalpur Cooperative Spinning Mills Limited, being an instrumentality or enterprise of the Government of Bihar should have furnished Form -IX under the Bihar Finance Act and that would have saved the petitioner from sales tax liability to the tune of Rs. 4 lacs and Rs. 6 lacs approximately in each of the transactions covered by the two writ petitions. The transactions of sale of yarns and similar goods by the writ petitioner to respondent no. 2 are of the year 1996 -97 and 1997 -98 respectively.

(3.) WE have been taken through the provisions of Section 11 of the Bihar Finance Act, particularly sub -section (4) thereof, to show that if as a selling dealer petitioner could produce a declaration in Form -IX from the buying dealer, then the liability to pay sales tax would be upon the buying dealer and not upon the petitioner and hence respondent no. 2 as a buying dealer is under legal obligation to furnish required Form -IX for the transactions in question.