Patna High Court - OrdersM/S Jagdamba Ispat Pvt.Ltd. vs The State Of Bihar & Ors on 20 November, 2008Author:Kishore K. MandalBench:Kishore K. MandalIN THE HIGH COURT OF JUDICATURE AT PATNA
                   CWJC No.1583 of 2005
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M/s Jagdamba Ispat Pvt. Ltd. situated at village Nasriganj, P.O.
Digha, District-Patna through its Director Sri Ajay Kumar Goyanka
son of Sri Satyanarayan Goyanka.
                         ....           .... Petitioner
                               Versus

   1. The State of Bihar through the Chief Secretary, Govt. of Bihar,
      Patna.
   2. The Commissioner, Finance (Commercial Taxes), New
      Secretariat, Vikash Bhawan, Bailey Road, Patna.
   3. The Assistant Commissioner, Commercial Taxes, Danapur
      Circle, Danapur, Patna.
                         ....            .... Respondents
                              -----------

For the Petitioner       :     Mr. Y.V. Giri, Senior Advocate
                               Mr. Raju Giri, Advocate

For the Respondents      :      Mr. Raj Nandan Prasad, Junior
                                Counsel to Advocate General
                              -----------

                             PRESENTHon'ble the Chief Justice
                                &
              Hon'ble Mr. Justice Kishore K. Mandal-----------Dated, the 20th November, 2008.The senior counsel for the petitioner and Mr. Raj Nandan

Prasad, Junior Counsel to Advocate General are ad idem that the

controversy raised in the writ petition is squarely concluded by the

Division Bench decision of this Court in the case of M/sIndian Oil

Corporation Limited & Anr. V. The State of Bihar & Ors., 2007(1)

PLJR 502. Althoughthe said decisionhas been carried in appeal-2-before the Supreme Court, but so far as this Court is concerned, we

are satisfied that the writ petition may be disposed of in the light of

the decision in the case of M/s Indian Oil Corporation Limited. The

parties, will of course be at liberty to pursue their remedy before the

Supreme Court, if they are so advised.2. In the light of the submissions made by the senior

counsel for the petitioner and Mr. Raj Nandan Prasad, Advocate

General, we are satisfied that this writ petition may be disposed of in

terms of paragraph 69 and 70 of the decision in the case of M/s Indian

Oil Corporation Limited. Paragraph 69 and 70 of the judgment of this

Court in the case of M/s Indian Oil Corporation Limited read thus: -"69. In light of the above discussions, I may
      summarize the conclusion as follows:(i) The levy under the parent Act of 1993, before
      its amendments, was not compensatory in character and
      was, therefore, violative ofArticle 301of the
      Constitution.(ii) The parent Act of 1993, before its
      amendments, was nevertheless saved by virtue ofArticle
      304 (b)of the Constitution and the decision in Bihar
      Chamber of Commerce to that extent remains
      subsisting till date.(iii) The amendments introduced in the Act by
      amending Acts 10 of 2001 and 9 of 2004 were bad
      because the former made the Act violative ofArticle 304(a) of the Constitution and further because both the
      amendments were made without the previous sanction of
      the President.(iv) The introduction of imported goods within the
      definition of `Entry of Goods' was bad for being
      retrospective as also for want of the Presidential
      sanction/assent.-3-(v) After the 2006 Amendment the levy under the
      Act acquired the nature of a compensatory tax and the
      Act in its present form is a valid piece of legislation.70. In light of the above discussions, the two cases
      are fit to be allowed because they relate to the period
      2001-2006. But I would refrain from making any order or
      direction in that regard since the matter is already
      pending before the Supreme Court."3. We dispose of the writ petition in terms of the

aforesaid order with no order as to cost.R. M. Lodha, CJ


                                    Kishore K. Mandal, J
Pawan/-