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2012 (8) TMI 863 - HC - VAT and Sales TaxImposition of entry tax and penalty - Held that:- there is no challenge to legality or constitutional validity of any statutory provision. For deciding whether the definition of "dealer" in the ET Act is legislation by mere reference or by incorporation, it is relevant to notice not only the legal precedents noticed above but also the preamble and provisions of the ET Act. Whereas the Bihar Finance Act, 1981 was legislated to consolidate and amend the law relating to the levy of tax on the sale and purchase of goods in Bihar, the ET Act is to provide for levy and collections of tax on entry of goods into local areas for consumption, use or sale therein. The Finance Act imposes tax on the transaction of sale or deemed sale of goods within the State of Bihar chargeable from a dealer. On the other hand, entry tax, as per the charging section 3 is levied on entry of scheduled goods for consumption, use or sale in Bihar. The purpose of such tax is development of trade, commerce and industry in the State. It may require insight into the working of the concerned enactment if one or the other view is adopted. It was highlighted that the kind of language used in the provision, the scheme and purpose of the incorporating statute is of substantial consequence. In the facts of the case, we find that the working of the ET Act is not at all impaired on account of our finding that the meaning of the term "dealer" in the ET Act is on account of incorporation of the relevant provisions in the Bihar Finance Act, 1981 by reference. - The revisional order was also passed on June 30, 2010 but even before that as per the facts given in the synopsis of the appeals, an amount of ₹ 26,00,26,812 was realized by the Department through the appellant’s bank, the State Bank of India. Clearly the appellant did not indulge in any dilatory tactics which could show that it was not acting bona fide. Even as per law laid down on the subject, it is not easy to decipher whether legislation such as one under consideration is by way of incorporation by reference or is merely by reference or citation. The orders imposing penalty are set aside. But the orders of assessment imposing entry tax and the appellate and revisional orders upholding that part are confirmed - Decided partly in favour of Revenue.
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