DWARKADAS AND RADHAKRISHNA Vs. STATE OF BIHAR

JUDGEMENT

(1.) Under Section 25(1) of the Bihar Sales Tax Act the Board of Revenue has submitted the following questions of law with regard to the assessment for the financial year 1947-48 :- (1) Whether the sum of Rs. 91,641-9-0, being the valuable consideration for machinery parts contracted to be sold, delivered and consumed outside the State of Bihar had been legally taxed under the Bihar Sales Tax Act, 1947 ? (2) Whether in the facts and circumstances of the case the petitioner's claim for deduction on account of sales to registered dealers had been legally rejected ?

(2.) With regard to the financial year 1949-50 the Board of Revenue has submitted the following question of law for the opinion of the High Court :- Whether the sum of Rs. 1,85,243-3-6, being the valuable consideration for machinery parts contracted to be sold, delivered and consumed outside the State of Bihar had been legally taxed under the Bihar Sales Tax Act, 1947 ?

(3.) With regard to the assessment for the period 1949-50, counsel on behalf of the assessee conceded that the question must be answered against the assessee and in favour of the State of Bihar in view of the decision of this Court in Messrs Tata Iron and Steel Company Limited v. State of Bihar AIR 1956 Pat. 92. In our opinion, the principle of that decision applies to the present case and we hold that the question referred to the High Court with regard to the assessment for the year 1949-50 should be answered against the assessee and in favour of the State of Bihar.