TMI Blog2002 (11) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of sales tax collected unauthorisedly. 2.. The admitted fact is that the petitioner-firm is engaged in manufacturing bakery products from maida, which is the raw material. The petitioner is a registered dealer under the provisions of the Bihar Finance Act. It was also registered as a small-scale industrial unit in 1987. The State Government with a view to accelerate the industrial production in the State issued Industrial Policy giving benefits under different heads including sales tax incentive to the units since 1986. The petitioner-unit commenced production on November 12, 1987 and availed benefit of set off of sales tax under the Industrial Policy of 1990 up to the period of December 31, 1994. 3.. In the year 1993, the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the State of Bihar v. Suprabhat Steel Ltd. reported in [1999] 112 STC 258. The apex Court held that even the old industrial units, which had commenced production prior to April 1, 1993, would be entitled to the facility of sales tax exemption as contemplated in terms of clause 10.4(i)(b) of the Industrial Policy, 1993. The petitioner also filed a writ application in this court being C.W.J.C. No. 6816 of 1997, which was disposed of in terms of the order of the apex Court, a copy of which is appended as annexure 4 to the writ petition. The petitioner approached the sales tax authority for grant of exemption which it was entitled in view of the law settled by the apex Court and this Court and, accordingly, the exemption certificate w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling dealers to the purchasing dealers. In case the assessment of the selling dealers has already been completed then the selling dealer can apply for review of the concluded assessment to the extent of the claim of refund before the respective assessing officer and in that case the selling dealers should be either granted a demand notice showing excess payment of tax or its liability for tax would be reduced to the extent of the amount refunded to the purchasing dealers. 6.. The narration of the facts stated above shows that the petitioner-unit is entitled to the exemption from payment of sales tax on the purchase of raw materials for the period January 1, 1995 to August 20, 1999 when the exemption certificate was granted. If the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has been taken with a view to harass the persons covered by the said action and decision. We are constrained to observe that the impugned circular in this case is arbitrary as the said procedure provided for refund of the money is cumbersome and dilatory one. There is no provision in circular to meet a situation where the selling dealer refused to refund the amount of tax collected by it from the purchasing dealer. The selling dealer is also put to harassment as he is required to file an application for review of the assessment in case the assessment has been completed. Such cumbersome and arbitrary procedure, in our view, should not be laid down in case of refund of sales tax. If the sales tax has been paid to the respondent-State b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the selling dealer and on being satisfied that the selling dealer has collected the amount of sales tax from the purchasing dealer on raw materials for the period when the exemption was in force and the said amount has been deposited with the respondentState, an order of refund should be made in favour of the purchasing dealer by the concerned authority. Accordingly, the petitioner is directed to file a fresh application before the Deputy Commissioner of Commercial Taxes (respondent No. 3), who is directed to issue notice to the selling dealer and after hearing the matter to pass an order of refund or adjustment in case the amount of sales tax has been collected from the purchasing dealer for the relevant period by the selling dealer a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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