Patna High Court
Food Corporation Of India vs The State Of Bihar on 1 December, 2021
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.785 of 2021
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Food Corporation of India Regional Office, Exhibition Road. Patna through
its General Manager, (Bihar Region)
... ... Petitioner/s
Versus
1. The State of Bihar Through its Chief Secretary Bihar
2. The Commissioner of Commercial Taxes, Bihar, Vikash Bhawan, Patna.
3. The Deputy Commissioner of Commercial Taxes, Pataliputra Circle, Patna.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Sachida Nand Kishore Pd. Sinha, Advocate
For the Respondent/s : Mr. Vikash Kumar, SC-11
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CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE S. KUMAR
ORAL JUDGMENT
(Per: HONOURABLE THE CHIEF JUSTICE)
Date : 01-12-2021
The petitioner has prayed for the following relief/s :-
Patna High Court CWJC No.785 of 2021 dt.01-12-2021
The dispute primarily pertains to the period of six
months, i.e., October, 2006 to March, 2007.
In our considered view, the matter can be put to rest in
view of the order dated 29th of August, 2017 passed by Hon'ble
the Apex Court in Civil Appeal No(s).1179/2017 (arising out of
SLP (C) No.10694 of 2007 titled as State of Bihar Vs. The Food
Corporation of India, which is reproduced hereinunder, in
toto :-
"Leaved granted.
A perusal of the judgment of the High Court
indicates that it has allowed the writ petition of the
respondent/assessee herein on two grounds, which are
as under :
1) the tax was non-discriminatory in nature
and violative of the provisions of Article 304 (b) of the
Constitution of India inasmuch as previous sanction of
the President of India was not taken; and
2) vide Notification No. SO 34 dated
01.04.2006, paddy, rice, wheat, pulses, flour, atta,
maida, suji and besan were added at Serial No. 25 of
the Schedule and on the same date vide another
Notification bearing No. SO 32, in exercise of the
power under Section 3(1) of the Bihar Entry Tax the
rate of entry tax on paddy, rice, wheat was fixed at 4%
of their value. As on that date sales tax on paddy, rice,
wheat was 1%.
On that basis, the High Court held that the
aforesaid SO 32 is discriminatory in nature.
Insofar as the finding of the High Court that
the Act is violative of provisions of Article 304(b) of
the Constitution is concerned, the same stands
overruled by a Nine Judge Bench judgment of this
Court in the case of Jindal Stainless Steel vs. State of
Haryana reported in 2016(11) SCALE 1. To this extent
the judgment of the High Court is set aside.
Patna High Court CWJC No.785 of 2021 dt.01-12-2021
Insofar as the second issue holding SO 32
dated 01.04.2006 in respect of paddy, rice and wheat
for the period 01.04.2006 to 30.06.2006 as
discriminatory is concerned, we do not find any error.
The findings on issue no. 2 are accordingly upheld. The
appeal is accordingly allowed."
Noticeably, a coordinate Bench of this Court vide
judgement dated 24th of January, 2007 rendered in CWJC No.
11787 of 2006, titled as Food Corporation of India Vs. The
State of Bihar & Ors., had struck down the action initiated by
the respondent, in recovering the amount in excess of the rate
fixed under the Bihar Value Added Tax Act, 2005.
As such, the petition is allowed. The Respondents
cannot charge and petitioner is not liable to pay any amount in
excess of what stands ordered by this Court as affirmed by
Hon'ble the Apex Court.
Interlocutory Application(s), if any, stands disposed
of.
(Sanjay Karol, CJ)
( S. Kumar, J)
Ashwini/Sanjay
AFR/NAFR
CAV DATE
Uploading Date 02.12.2021
Transmission Date
