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Judgment
This writ application has been filed on behalf of the Petitioner for quashing an assessment order passed by the Deputy Commissioner, Commercial Taxes, Pataliputra Circle, Patna, for the period of assessment 1989-86.
The main grievance, which has been made on behalf of the Petitioner, is that the exemption from payment of sales tax should have been given to the Petitioner on the value of cement and steel used for the construction in question, which were tax paid goods It was pointed out that steel is a declared goods within the meaning of Section 14 of the Central Sales Tax Act, and as such, no sales tax can be levied by the State Government, if any sales tax has already been paid within the iterritory of the Slate of Bihar. Similar grievance in respect of cement with reference to Section 11 of the Bihar Finance Act, 1981, was made saying that since there is only one point taxation on the cement and the tax hiving been paid, no tax can be imposed for the second time.
Yet another grievance, which has been made on behalf of the Petitioner about the tax on the labour charges is based on Rule 13A of the Bihar Sales Tax Rules, 1983.
In this connection our attention was drawn to a Bench decision of this Court (Ranchi Bench) in the case of Jamshedpur Contractors Association Jamshedpur and Ors. v. The State of Bihar and Ors. analogous cases (1989 BLT 381 : (1990 PLJR 407) in which Rule 13A has been held to be ultra vires As in the instant case in the assessment order sales tax, so far labour charges are concerned, has beep calculated on the basis of Rule 13A. We are left with no option, after the judgment aforesaid, but to quash the order of assessment and to direct the Deputy Commisioner, Commercial Taxes, to pass a fresh assesement order in the light of the aforesaid judgment.
The learned Deputy Commissioner shall also consider the grievance of the Petitioner in respect of tax paid items cement and steel, which were used by the Petitioner for the construction in question and examine that question in the light of the Supreme Court judgment in the case ofBuilders Association of India and Ors. v. Union of India and Ors. (AIR 1989 SC 1971 1989 PLJR. (SC) 31) and in the case of M/s. N.M. Goel and Co. Vs. Sales Tax Officer, Rajnandgaon and another, .
This writ application is, accordingly, allowed and the impugned order of assessment and demand notice are quashed. The Deputy Commissioner, Commercial Taxes, shall pass a fresh assessment order in accordance with law and in the light of the judgments referred to above.