Case Law Details
Mahavir Sharmik and Nirman Swalambi Sahkari Samiti Limited Vs State of Bihar (Patna High Court)
Introduction: The recent judgment from the Patna High Court in the case of Mahavir Sharmik and Nirman Swalambi Sahkari Samiti Limited vs. State of Bihar brings forth significant relief for a cooperative society involved in solid waste management. The court’s ruling, based on exemptions under the Bihar Goods and Services Tax Act, has implications for the taxation of activities related to waste disposal.
Detailed Analysis:
i. Background of the Case: The petitioner challenges an assessment order under the BGST Act, contending that the activity of removing solid waste is exempt as per a specific notification. The dispute arises from a notice quantifying tax and penalty for the Assessment Year 2019-20, based on deductions made by the Nagar Parishad, Jamalpur, under the Income Tax Act.
ii. Petitioner’s Argument: The petitioner, a Cooperative Society, asserts that the proposed tax levy is not sustainable under the BGST Act. The contention revolves around a specific notification exempting the removal of solid waste, which, according to the petitioner, does not qualify as a works contract under the Act.
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