TMI Blog2011 (1) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000 on the Excise Department which would be payable to the petitioner within a period of three months from today. - CWJC No. 11276 of 1995 - - - Dated:- 21-1-2011 - KATRIAR S.K. AND SINGH S.P. JJ. Gautam Kejriwal and Akash Chaturvedi for the petitioner Piyush Lal, AC to AAG 1, for the respondents JUDGEMENT In the instant writ petition, the petitioner seeks quashing the demand notice dated January 14, 1993, issued by the Assistant Commissioner, Commercial Taxes, Bhagalpur. Before we take up the issue in question, it is necessary to notice the facts in some detail. The petitioner is a manufacturing unit of rectified spirit. It supplied rectified spirit to the bonded warehouse maintained by the State Government ; th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment of Sales Tax were pending before the Government, the Commissioner of Commercial Taxes, Bihar vide his memo No. 492 dated January 22, 1990 directed all the sales tax authorities to recover sales tax from the manufacturer of country liquor spirit with effect from April 1, 1989, and for the period prior to April 1, 1989 the matter was to be decided between the authorities of sales tax. A copy of memo No.492 dated January 22, 1990 is annexed as annexure 3 to the writ petition. Pursuant to the letter of the Commissioner of Commercial Taxes dated January 22, 1990, the sales tax Department begun to pressurize the petitioner for payment of sales tax. The petitioner time and again represented both before the Excise Department and the Commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner to the bonded warehouse maintained by the State Government. It is also not in dispute that the petitioner did not receive the sales tax amount from the Excise Department. It appears that the Commissioner of Commercial Taxes was also one of the members in the high levelled meeting dated December 2, 1989 in which the liability regarding payment of sales tax was referred to the State Government for its final decision. The point at which sales tax liability was payable was yet to be resolved. The letter of the Excise Commissioner would also show that it was the liability of the Excise Department to pay the sales tax amount on the sale of rectified spirit made by the petitioner unit to the bonded warehouses maintained by the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er admits the liability to pay sales tax due, we do not consider it expedient to remit the matter to the State Government. As such, we quash the impugned demand notice dated January 14, 1993 contained in annexure 8 issued by the Assistant Commissioner, Commercial Taxes, Bhagalpur. It would be open for the Commercial Tax Department to recover the same from the Excise Department. It is evident that the petitioner has undergone litigation for 15 years dn account of non-resolution of the dispute due to stand off between the two Departments which has not only caused harassment to the petitioner but also burdened this court with unnecessary litigation. We accordingly award cost of ₹ 20,000 on the Excise Department which would be payable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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