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2023 (8) TMI 403 - HC - VAT and Sales TaxRefund claim - illegal deduction and recovery from the bills of the petitioner as advance Value Added Tax - manufacture and supply of the goods by the petitioner to the Railways was an inter-state sale - not exigible to sales tax within the State of Bihar either as a sale of goods or as a works contract - Section 40 and 41 of the Bihar Value Added Tax Act, 2005 - HELD THAT:- A Division Bench of the Hon’ble Supreme Court also examined the very same position in HYDERABAD ENGINEERING INDUSTRIES VERSUS STATE OF ANDHRA PRADESH [2011 (3) TMI 1427 - SUPREME COURT]. Therein the appellant, a registered dealer within the State of Andhra Pradesh was engaged in the manufacture and sale of electrical and other consumer items and they entered into an agreement with another company for marketing and sale of their products. The appellant, pursuant to orders of sale issued by the other company, the agent, transported the products to the various depots belonging to themselves from where the agent collected the goods and delivered it to the ultimate purchaser. The assesse-appellant claimed it as a branch transfer. The Hon’ble Supreme Court found favour with the order of the Assessing Officer, which found it to be an inter-state sale exigible to tax under the CST Act. In the present case also the contract is one for manufacture and transportation of pre-stressed concrete slabs and RCC Ballast Retainers of precise and particular specification. There is no works contract involved and it is only a sale pure and simple of goods manufactured by the petitioner, who has been awarded the contract; which is only for manufacture and sale - The transaction is purely of an inter-state sale of goods and is not a works contract nor a sale of goods exigible to tax within the State of Bihar. The sale of goods as per Annexure-2 and Annexure-5 agreements constitute an inter-state sale not exigible to tax within the State of Bihar. The Railways had made a deduction on the ground that it is a works contract; which are negatived. The Railways is bound to refund the illegal tax deduction made from the bills to the petitioner contractor. The Railways could definitely apply for refund from the Bihar Value Added Tax Department. The refund granted, but, confined to the deductions made three years prior to the date of registration of the above writ petition which is on 14.05.2012; giving effect to the limitation as prescribed for recovery of money under the Limitation Act. The Railways shall refund the amounts with 6% interest within a period of 4 months from the date of receipt of the certified copy of this judgment. If the refund is not granted within that time then the interest shall run at the rate of 12% from the date of expiry of the 4 month period. Petition allowed.
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