IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.11362 of 2005 M/S Herbal Remedies India Pvt. Ltd., a Company incorporated under the provisions of Companies Act, 1956, having its Registered Office at E/87, S.K. Puri, P.O. G.P.O. P.S. Sri Krishna Puri District Patna through its Director, Baidyanath Ram, son of late Butai Ram, resident of E/87, S.K. Puri, P.O. G.P.O. P.S. Sri Krishna Puri, District Patna … Petitioner Versus 1. The State Of Bihar through Commissioner of Commercial Taxes, New Secretariat, Bailey Road, Patna. 2. The Joint Commissioner of Commercial Taxes(Appeal), Patna Division, Patna 3. The Joint Commissioner of Commercial Taxes (Administration) , Patna Division, Patna 4. The Deputy Commissioner of Commercial Taxes, Patliputra Circle, Patna. 5. The Deputy Commissioner of Commercial Taxes, South Circle, Patna. 6. The Deputy Commissioner of Commercial Taxes, Patna West Circle, Patna. 7. The Assistant Commissioner of Commercial Taxes, Patna West Circle, Patna. … Respondents ----------- For the Petitioner : M/s S. D. Sanjay & Gautam Kejriwal, Advocates. For the Respondents : Mr. Ajit Kumar, A.C. to AAG 12. --------- 03/ 28.07.2011 Heard learned counsel for the petitioner and learned counsel for the respondents. 2. This writ petition has been filed by the petitioner for the following reliefs :- (i) For a direction to the respondent-authorities to issue Certificate of Exemption to the petitioner under Notifications-SO No. 478 & SO No. 479 both dated 22.12.1995 from the date of commencement of Commercial Production i.e. 09.12.1998 for the period of 8 years i.e. up to 08.12.2006 in view of the Report that the petitioner is entitled to for the exemption from payment of Sales-tax on purchase of Raw Materials & 2 on sale of Finished Products, but has been wrongly withheld by the respondents inspite of specific direction of this Hon’ble Court to consider and pass final order expeditiously; (ii) For quashing of the assessment orders dated 05.02.2003, 10.02.2004 & 27.09.2004 passed by respondent no.6 for the period 1998-99, 1999-2000 and 2000-2001 is illegal as the respondents have failed to pass any final order on the application for exemption which is pending since 24.12.1998 and petitioner being eligible is entitled for exemption and not liable to pay any sales tax. (iii) For a declaration that the impugned Assessment Orders have not only been passed by respondent-Dy. Commissioner of Commercial Taxes, Patna West Circle Patna in utter disregard to the Order of this Hon’ble Court passed in C.W.J.C. No. 13293/2002 dated 28.11.2002 but has also been passed in utter violation of the principles of natural justice without service of any notice for assessment to the petitioner; (iv) For a direction to the respondents to comply with the order dated 28.11.2002 passed by this Court and to grant and issue exemption certificate to the petitioner as per the fixed capital investment made by the petitioner mentioned in the Balance Sheet for the period 1999-2000 to the tune Rs.2,75,741.05 for which the petitioner is entitled to and to by disposing of the application for exemption; and for any other relief(s) for which the petitioner may legally be found entitled to in the facts and circumstances of the case. 3. From the averments of learned counsel for the parties as well as from the materials on record, it stands admitted 3 that vide order dated 30.08.2005 (Annexure `A’), the competent authority of the Sales Tax Department granted exemption to the petitioner giving the parameters and the period, for which the said exemption would be applicable. It also transpires that the authorities have passed the assessment orders making assessment and inflicting tax liability upon the petitioner for the said period. 4. In the said circumstances, the said orders, namely, the impugned orders dated 05.02.2003, 10.02.2004 and 27.09.2004 are hereby quashed. However, in paragraph no. 22 of their counter affidavit, the respondents have stated that the Returns, filed by the petitioner for the periods 1998-1999, 1999-2000 and 2000-2001, revealed that he had charged and collected sales tax on the sales made by him and hence it is stated by learned counsel for the respondents that when the petitioner had charged and collected tax from the consumers, he is liable to pay tax to respondent-authorities. In reply to the said statement, the petitioner has stated in paragraph no.8 of his reply to the counter-affidavit that he never charged any tax on its products as he was entitled for exemption in terms of Industrial Policy Resolution, 1955. 5. Considering the aforesaid facts and circumstances, the Joint Commissioner of Commercial Taxes (Administration), Patna Division (respondent no. 3) is directed to look into the matter and decide it in accordance with law keeping in view the provisions of the Industrial Policy Resolution, 1955 and the settled principles of 4 law in this regard. He will also look into the claim of the respondents that the petitioner had charged and collected sales tax during the period of exemption and the reply of the petitioner to the said statement and shall pass a speaking order after hearing both the parties expeditiously preferably within a period of two months from the date of receipt/production of a copy of this order. 6. Accordingly, the impugned orders are quashed and this writ petition is disposed of with the aforesaid directions to the authority concerned. MPS/ ( S. N. Hussain, J. )