TMI Blog2016 (8) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... e file placed that the Government, after preparation of the draft notifications, had placed the matter for obtaining legal opinion from the Government Advocate and the Advocate General, Bihar, and it was only after obtaining the same that the matter was placed before the Cabinet and the Cabinet, in its meeting, dated 11.9.2007, accepted the proposed draft notifications and accorded approval for issuance of the same. It was only thereafter that impugned notifications, contained in Annexures 1, 2 and 3, were issued. Thus, the allegations of the writ petitioner are wholly unfounded - writ petition dismissed. - Civil Writ Jurisdiction Case No. 16920 of 2014 - - - Dated:- 2-8-2016 - I. A. Ansari, CJ And Smt. Anjana Mishra, JJ. Nagrik Adh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification bearing No. S.O. 85, dated 13.09.2007, the rate of Bihar Tax on Entry of stone chips, stone boulders and stone ballasts has been reduced from 8% to 4%; and under the Notification bearing No. S.O. 65, dated 03.07.2008, the rate of VAT has been reduced from 12.5% to 4% on plate and cup made of leaves. 2. The petitioner, therefore, seeks an investigation by the Central Bureau of Investigation (in short, CBI ) and also a direction to the respondents, particularly, the Chief Secretary, Government of Bihar, to recover the loss of revenue by initiating proceedings under the Bihar Public Demands Recovery Act, 1994. The petitioner further seeks necessary direction restoring the status quo ante with regard to the levy of tax as was in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng an First Information Report against those responsible for such an action. 5. It is further contended that the Assistant Auditor concerned had raised his objections, vide Annexure 4, and the petitioner has also made representation with regard to the issuance of the said illegal notifications, contained in Annexures 1 to 3, but no action has been initiated by the authorities of the State Government to recover the loss of Government money of more than ₹ 100 crores. It is contended that by drawing a proceeding under the Bihar Public Demands Recovery Act, 1994, the respondents were duty bound to recover the alleged loss from those, who have been benefited from the illegal Notification and such officers, who had created the present an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rue and untenable. It is submitted that the petitioner has sought for such relief only on the basis of draft report, dated 23.05.2012, of the Comptroller and Auditor General of India. 9. It is further contended that under the VAT Act, 2005, tax is imposed in the following manner: Schedule I - no tax payable on sale or purchase of such goods. Schedule II - 1% on tax payable on sale price of goods specified therein. Schedule III - attracts the tax at the rate of 5% Schedule IIIA - the rate of tax is 4% on such goods. Schedule IV--not below 10% and not exceeding 50%. The goods not specified in Schedules aforesaid, i.e., unspecified items: Sale attracts tax at the rate of 12.5%. 10. However, prior to 2007, there was some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition was with the object to prescribe the rate of tax for stone chips, stone boulders and stone ballasts at 4%. The said draft notification was examined, in detail, by the learned Advocate General and a perusal of Annexure 5 series, at page 95 of the writ application itself, reveals that the Government of Bihar recorded that the addition of Serial No.143, in Part I of Schedule III, is for removal of the anomaly between the Entry Tax and VAT on stone chips and stone boulders. 14. It is categorically submitted by the learned Principal Additional Advocate General that another draft notification was also vetted by the learned Advocate General, whereby reduction of tax under the Entry Tax Act on the aforesaid stone chips, stone boulders f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also has been placed before the Court. Hence, the respondents fairly denied that the impugned notifications, reducing the VAT rate on stone chips, stone ballasts and stone boulders, were issued without obtaining the approval of the Cabinet. 17. So far as Annexure 3 is concerned, it is submitted, in the writ application, that plate and cup, made of leaves, were brought in Schedule-I claiming to be goods under unspecified category and taxable at the rate of 12.5%. The Cabinet s approval for the same had been obtained. However, experience had revealed that such items, namely, plate and cup, made of leaves, were already, in Schedule III, under Entry No.73, being taxable at the rate of 4%. Hence, the Government took corrective measures and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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