2004 (9) TMI 380 - SUPREME COURT

Whether the appellant had any "liability" under the Bihar Finance Act, 1981?

Held that:- Appeal allowed. It cannot be said that as tax was not paid on portion of the turnover of the scheduled goods, i.e., cement, the assessee-appellant had no liability under the Act. It was definitely liable to pay tax under the Act, but for the exemption. There is no dispute that the assessee-appellant was liable to pay tax under sub- section (3) of section 3 of the Entry Tax Act. Therefore, it was entitled to reduction to the extent of tax paid under the Entry Tax Act while working out tax payable by it under the Act. Above being the position the notices issued by the respondent are without legal sanction and are quashed. The judgment of the High Court is set aside