IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.17042 of 2007 BIHAR STATE HYDRO ELECTRIC POWER CORPN. Versus THE STATE OF BIHAR & ORS ----------- For the petitioner : Mr.Y.B.Giri,Sr.Adv. Mr.Naresh Dikshit & Mr.Kalpana, Advs. For the Respondent : Mr.Siddharth Prasad,JC to AG.IX. 5 8.5.2008 It is unfortunate that despite direction given by this Court, the Chief Secretary could not sort out the matter in between the Tax Department of the State and the petitioner, a State Government Undertaking. The dispute with which the petitioner has approached this Court is non-issue of Form-C under the Central Sales Tax Act. The principal contention of Tax Department, being respondent in the present writ petition, is that the petitioner is importing goods for use and consumption from out side the State but is not paying entry tax thereon and until such time entry tax is paid, it would not issue Form-C. The right to recover entry tax vests in the State by virtue of Statute made by the Legislature of the State. Similarly, the right to charge Bihar value added tax vests in this State by virtue of the legislation made by the Legislature of the State. The Legislations so made do not authorize the State to withhold issuance of statutory forms for non-discharge of obligation, if any, arising out of legislations. By referring to quarterly return submitted by the petitioner under section 24 of the Bihar Value Added Tax, 2005 it has been contended by the respondents that the petitioner has no turn over and, accordingly, they are not buying anything from outside and, as such, question of issuance of Form-C under the Central Sales Tax Act does not arise. In the return to be filed under section 24 of the Bihar Value added Tax Act, 2005, a registered dealer, as 2 that of the petitioner, is required to furnish a true and complete return in respect of all transactions relating to sales and purchase of goods and any other transaction as may be prescribed specifically to the prescribed authority in such form and in such manner as prescribed. Form RT-1 has been prescribed to discharge obligations imposed by section 24 of the said Act. Part-C of the said form requires furnishing of details of purchases/receipts. That also requires furnishing of informations relating to purchases made from outside the State. It is true that in the said form, petitioner has not indicated that purchases have been made by it from outside the state. At the same time, there is no dispute that the petitioner has been assessed for having imported from outside the State goods for its use and consumption and, as such, it is contention of the respondents that the petitioner has incurred liability on account of entry tax, which has not been paid. In the event petitioner is liable to pay entry tax, but has not paid the same, legislation made for authorizing the State to collect entry tax provides the method of recovery of the same. The method so prescribed does not authorize withholding of C-forms to which the petitioner is entitled to under the Central Sales Tax Act. In those circumstances it was unjust on the part of the respondents to withhold issuance of Form-C under the Central Sales Tax Act to the petitioner for his alleged failure to pay entry tax in respect of goods imported by it for its consumption and use. In the circumstances, the writ petition succeeds with a direction upon the petitioner to furnish to the appropriate Tax authority of the State the particulars of purchases made by it from outside State of Bihar for which it seeks issuance of Form-C and within a period 3 of one month from the date of furnishing of such particulars along with copies of bills raised by the sellers of the petitioner, the appropriate tax authority of the State shall issue Form-C to the petitioner in respect of those purchases, without insisting upon the petitioner to pay any entry tax. It is made clear that this system will continue in future and, accordingly, within a month from the date of submission of particulars of purchases in the same manner, as above, Form-C would be issued to the petitioner. Issuance of Form-C in terms of this order or this order itself will not stand in the way of the State and the Tax Department of the State from taking steps for recovery of entry tax from the petitioner in accordance with law. Jay/ (Barin Ghosh,J) (C.M.Prasd,J)