Case: M/S Eureka Forbes Limited Vs. State Of Bihar

The present case relates to assessment of the Appellant herein concerning assessment years 1990-91, 1991-92, 1992-93 and 1993-94.3. The assessment proceedings were initiated under the Bihar Finance Act, 1981 read with Bihar Sales Tax Rules, 1983. Notices under Section 17 (2)(a) of the Act were issued to the assessee for examination of books of accounts. The said books of accounts were produced and assessment orders under Section 17 (2)(b) of the Act were passed. In the said assessment order, the assessee was levied tax on vacuum cleaner at the rate of 12% treating it as electrical goods as against the contention of the Appellant that vacuum cleaner, which is an article dealt with by the Appellant, is taxable at the rate of 8%.4. The Assessing Officer by the assessment order rejected the aforesaid contention of the assessee while holding that the assessee is liable to pay tax on vacuum cleaner at the rate of 12%. Being aggrieved by the aforesaid findings and assessment order passed by the Assessing Officer, the Appellant filed appeals which were entertained and disposed of dismissing the said appeals.5. Being aggrieved by the aforesaid order passed in appeals, the assessee preferred Revision Applications before the Commercial Taxes Tribunal. By an order passed on 15.4.2004, the Tribunal dismissed the said Revisions holding that the vacuum cleaner is an electrical good or instrument and, therefore, it falls within Entry 81 of the Notification dated 26.12.1977 issued under Section 12 of the Bihar Finance Act - Bihar Sales Tax Act, 1959.6. Being aggrieved by the aforesaid order of the Tribunal, a writ petition was filed, which was again dismissed by the High Court by judgment and order dated 26.2.2010 as against which this appeal was filed.

Reasoning:
Learned counsel also relied upon a decision of this Court in The Federation of Andhra Pradesh Chambers of Commerce & Industry and Ors. Etc. Etc. v. State of Andhra Pradesh and Ors. Etc. Etc. reported in (2000) 6 SCC 550 , wherein it is laid down in para 7 that taxing statutes are to be strictly construed and that nothing could be added to what is stated in the statute itself. We agree and accept the aforesaid principles of law laid down by this Court. That is a settled position of law, but according to us, the said decision in no way helps the Appellant in view of the reasoning given by us for the findings arrived at by us. So far the decision of the Division Bench of the Patna High Court in Eureka Forbes Ltd. v. State of Bihar and Ors. reported in 2000 (119) STC 460 (Pat.) is concerned, the same is also not applicable to the facts of the present case as the same relates to a case of re- opening of assessment on the ground of change of opinion and therefore, the said case also has no application at all. The decision of the Bombay High Court in Indian National Shipowners Association, a Company having its registered office through its Deputy Secretary and Mr. Badrinath Durvasula having his place of business v. Union of India (UOI) through Secretary, Dept. of Revenue, Ministry of Finance Govt. of India and Ors. reported in 2009 (14) STR 289 (Bom.) also has no application to the facts of the present case.