2009 (3) TMI 924 - HC - VAT and Sales Tax

Summary

Issues:
- Obligation of respondent No. 2 to furnish form IX under Bihar Finance Act, 1981
- Sales tax liability of the petitioner in transactions with respondent No. 2
- Legal entitlement of the petitioner to form IX for exemption from sales tax

Analysis:
The petitioner contended that respondent No. 2, a government instrumentality, should have provided form IX under the Bihar Finance Act, 1981, to avoid sales tax liability. The transactions involved the sale of yarns and similar goods in 1996-97 and 1997-98. The court examined section 11 of the Act, emphasizing that if the buying dealer (respondent No. 2) could produce form IX, the sales tax liability would shift to them. The respondents did not file a counter-affidavit, revealing that respondent No. 2 was a sick unit managed by the government.

The court focused on whether respondent No. 2 was legally obligated to provide form IX and if the petitioner was entitled to it for sales tax exemption. It was observed that while form IX could have shifted the liability to respondent No. 2, there was no legal obligation for them to provide it without a contractual agreement. As there was no written agreement governing the transactions, the petitioner failed to establish a legal right for invoking writ jurisdiction in their favor. Consequently, the court dismissed both writ petitions, concluding that the petitioner did not demonstrate a legal basis for relief and declined to address other submissions raised on their behalf.