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2022 (9) TMI 1209 - HC - VAT and Sales TaxAdditional levy of tax on supply of cement to the contractor by the Assessee - Sale of Cement - point of sale - HELD THAT:- It is an admitted fact that Tata Steel Ltd. purchased cement after paying tax, which was leviable at first point of tax and supplied the same to its contractor for executing works in its behalf and has, admittedly, deducted the amount towards supply of cement from the bills of the Contractor - Thus, in view of the ratio of the Judgments laid down by the Hon’ble Apex Court in the cases of NM GOEL AND COMPANY VERSUS SALES TAX OFFICER, RAJNANDGAON [1988 (10) TMI 106 - SUPREME COURT], and RASHTRIYA ISPAT NIGAM LTD. VERSUS STATE OF ANDHRA PRADESH [1998 (2) TMI 480 - SUPREME COURT], there is no dispute on the proposition that transaction of supply of cement by the Assessee to its contractor and recovery of the amount from bills of the contractor would amount to second sale of cement by the Assessee to its contractor. In fact, Respondent-Tata Steel Ltd. has not joined issues on said proposition of law and has accepted said proposition of law. In the entire writ application, no dispute is raised that cement is leviable at first point of sale and tax has already been paid on such cement - on examination of provisions of Section 11 of the Bihar Finance Act, 1981 and the relevant Notification dated 26th December, 1977. Section 11 of the Bihar Finance Act, 1981 enables the State Government to prescribe point or points in the series of sales at which the sales tax shall be levied. Admittedly, in exercise of the said power, sales tax was levied on cement only on the first point of sale, and, any subsequent sale of cement was not leviable to tax. It is declared that although transaction of supply of cement by Assesse-Tata Steel Ltd. to its contractor and recovering the amount from bills of the contractor would amount to second sale of cement, the same would still not be subjected to levy of tax on the second sale, as, admittedly, cement was levied to tax only at the first point of sale and, admittedly, tax on such cement has duly been discharged by the assesse-Tata Steel Ltd. There are no merit in the writ application and the same is dismissed.
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