B.S. Chauhan, Anil Kumar Sharma, Praveen Kumar, A.T. Patra, Vineet Kumar, A.K. Jha, M.P. Jha, R.S. Sodhi, A. Minocha, Mrs. Indu Goswamy, S.K. Sinha, Vinoo Bhagat, P.N. Misra, KK.
WITH Writ Petitions Nos.
1788, 3726, 3727, 4529 of 1981, 253, 688, 1473 of 1982, 2771/81, 96/82, 1233, 1498, 1907, 1986 of 81, 1042, 1043, 1121, 1044 of 1982, 3198, 3197, 3195, 3147, 3146, 3148, 1573, 1377, 1802, 1852, 1800, 1950, 1776 of 1981, 1038 of 1982, 1300, 1301, 1303, 1329, 1334, 1383, 1648 of 1981, 255 of 1982, 1193, 1198, 1204, 1206, 1209, 1211, 1213, 1214, 1262 64, 1273, 1282, 1283, 1287, 1331, 1355 1382, 1384, 1386, 1431, 1432, 1484, 1488, 1489, 1548, 1645, 1734, 1833 of 1981, 78 of 1982, 1154, 1160, 1168, 1169.
From the Judgments and orders dated the 30th April, 1982, 3rd May, 5th, 6th, 7th, 10th, 11th, 12th, 13th May, 19th August 9th 15th September, 8th 18th October 1982, 20th 21st January, 1983 of the Patna High Court in W.J.C. Nos.
and the tax payable thereon at Rs.
34,06,809.80p.
inclusive of surcharge at 10 of the tax for the period from January 15, 1981 to March 31, 1981 and April 1981 to January 19, 1982 amounting to Rs.
Appeals by special leave from the Judgments and orders dated the 30th April, 1982, 5th, 6th, 7th, 10th, 11th, 12th, 13th, 15th, May, 1982, 3rd, 17th, 23rd, August, 1982 of the Patna High Court in C.W.J.C Nos.
1186, 1187, 1191, 1549, 1556, 1557 58, 1415, 1461, 1465, 1487 of 1981, 251 of 1982, 228, 1321 of 1981, 394, 1478 of 1982, 1320/81, 902, 565/82, 1775, 1177, 1801 of 1981, 503/82, 1804/81, 1, 3, 4, 6 7 of 1982, 3079, 3528 of 1981, 1947/82, 1254/82, 2922/81, 1372/82, 1408 1482 of 1981.
Jain and Pramod Dayal for the Appellants.
3,13,69,598,12p.
The Bihar Finance Act 1981, is number only an Act for the levy A of a tax on the sale or purchase of goods but also is an Act to companysolidate and amend various other laws.
10744 53, 9554 58, 9788, 9821 22, 10907, 9095, 1202 05, 9886 88, 9500 02, 9753, 9523, 10912, 11069, 10754 56, 10797 10812, 10891, 9702, 9782, 9561, 14001, 14364 66 of 1982, 1393 96, 1422 23, 1472 73 of 1983.
and Rs.
19,65,137.52.p.
2567 of 1982 Messrs Hoechst Pharmaceuticals Limited Another v. The State of Bihar others, and Civil Appeal No.
There is excess payment of Rs.
3,09,955.86p.
40,13,057.28p.
respectively.
in the year 1981 82.
The tax liability for the period from January 15, 1981 to March 31, 1981 companyes to Rs.
2567, 2818 20, 2648, 3277, 2817, 2918, 3079 83, 3001 04, 3543 48, 2810 16, 3375, 2864 2917, 2989 3000, 3084 3088, 3268 71, 3253 54, 3399 3400 of 1982.
respectively.
3277 of 1982 Messrs Glaxo laboratories India Limited v. The State of Bihar others.
and Rs.
The figures for the assessment year 1981 82 are number available.
3,85,023.33.p.
5,17,83,985.76p.
20,03,640.85p.
Thus the total tax assessed of Messrs Hoechst Pharmaceuticals Limited including surcharge for the assessment year 1980 81 amounts to Rs.
and the surcharge thereon at 10 amounts to Rs.
38,503.33p.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
Messrs Hoechst Pharmaceuticals Limited and Messrs Glaxo Laboratories India Limited are companypanies incorporated under the Companies Act, 1956 engaged in the manufacture and sale of various medicines and life saving drugs throughout India including the State of Bihar.
AND Special Leave Petitions Nos.
9266, 10055 56, 7002 09, 7019 23, 7024, 7921 22, 7996.97, 8508 10, 9680 92, 9322, 7647 53, 8005, 8067, 7160 of 1982, 415 76 78, 640 41, 652 of 1983 Under article 32 of the Constitution of India B. Divan, A.K. Sen, Shankar Ghose, P.R. Mridul, Hardev Singh S.T. Deasi, Talat Ansari, Ashok Sagar, Sandeep Thakore, Ms. Rainu Walia, D.N. Misra, D.P. Mukherjee, B.R. Agarwala, Miss Vijayalakshmi Menon, U.P. Singh, B.B. Singh.
They have their branch or sales depot at Patna registered as a dealer under s. 14 of the Act and effect sales of their manufactured products through wholesale distributors or stockists appointed in almost all the districts of Bihar who, in their turn, sell them to retailers through whom the medicines and drugs reach the companysumers.
The appellants have placed on record their printed price lists of their well known medicines and drugs manufactured by them showing the price at which they sell to the retailers as also the retail price, both inclusive of excise duty.
Almost 94 of the medicines and drugs sold by them are at the companytrolled price exclusive of local taxes under the Drugs Price Control order, 1979 issued by the Central Government under sub s. 1 of s. 3 of the Essential Commodities Act and they are expressly prohibited from selling these medicines and drugs in excess of the companytrolled price so fixed by the Central Government from time to time which allows the manufacturer or producer to pass on the tax liability to the companysumer.
55,383.98p.
13,112.35p.
These figures show the magnitude of the business carried on by these appellants in the State of Bihar alone and their capacity to bear the additional burden of surcharge levied under sub s. I of s. 5 of the Act.
Foe the assessment years 1980 81 and 1981 82 the annual returns filed by Messrs Glaxo Laboratories India Limited show the gross turnover of their sales in the State of Bihar through their branch at Patna at Rs.
These appellants have also placed on record their orders of assessment together with numberices of demand, for the assessment years 1980 81 and 1981 82.
For the assessment year 1980 81, the Commercial Taxes officer, Patna Circle, Patna determined the gross turnover of sales in the State of Bihar through their branch office at Patna of Messrs Hoechst Pharmaceuticals Limited on the basis of the return filed by them at Rs.
in the assessment year 1980 81 and Rs.
5,89,22,346.64p.
and Rs.
The High Court referred to the decision in S. Kodar v. State of Kerala 1 where this Court upheld the companystitutional validity of sub s. 2 of s. 2 of the Tamil Nadu Additional Sales Tax Act, 1970 which is in pari materia with sub s. 3 of s. S of the Act and which interdicts that numberdealer referred to in sub s. l shall be entitled to companylect the additional tax payable by him.
They have paid tax along with the return amounting to Rs.
1176, 1516 1435, 1177, 1618, 1469 1252 of 1982, 3398/81, 1355/82, 525182, 3640, 3641, 3642, 3743 3745 of 1982, 1326, 1784, 1405, 1854, 3337, A 1656 of 1981, 349, 1108, 1148, 4073, 4074, 4075 of 1982, 3118, 3080, 1161, 1374, 2804, 3035 of 1981, 4213/82, 1517/82, 1278, 1414, 1290, 1291, 1292, 1297, 1306, 1200, 1212, 1256, 1276, 1277, 1485 of 1981, 484, 509/82, 1517, 1578, 1450, 4037, 2944, 1788, 2889 of 1981, 1547, 506, 507, 508, 4931, 1253, 1431, 1432, 207 214 of 1982 182 203 of 1983.
34,877.62p.
