Case Law Details
Raj Kumar Sao Kishori Lal Sao Vs State of Bihar (Patna High Court)
The legal proceedings involving Raj Kumar Sao Kishori Lal Sao and the State of Bihar, as adjudicated by the Patna High Court, revolve around the assessment years 1991-92 and 1992-93. The central issues in both appeals are linked to the imposition of purchase tax on goods acquired from unregistered dealers and the taxation of the sale of ‘Korai,’ asserted to be cattle feed and allegedly exempt from tax.
1. Background and Assertion of the Appellant: The appellant, described as a partnership engaged in the purchase, processing, and sale of food-grains, pulses, and by-products used as cattle feed, contests the imposition of purchase tax on goods acquired from unregistered dealers. The appellant argues that the decision in Hotel Balaji v. State of A.P. is not applicable to the relevant assessment years, as it came later.
2. Tax on ‘Korai’ and Contentions: The focus then shifts to the tax levied on ‘Korai,’ purportedly cattle feed. The appellant contends that ‘Korai’ is exempted as cattle feed, and challenges the first Appellate Authority’s application of a 4% tax rate, equating ‘Korai’ to Wheat Bran. The appellant asserts that Hotel Balaji’s dictum does not extend to the earlier assessment year.
3. Government Advocate’s Response: The learned Government Advocate counters the appellant’s arguments by referencing Hotel Balaji, emphasizing its affirmation of legislative competence concerning purchase tax. Regarding ‘Korai,’ it is presented as an unspecified good taxable at 8%, with the first Appellate Authority’s adjustment to a 4% tax rate justified. The Advocate asserts that there is no factual evidence indicating that the goods sold by the appellant were indeed cattle feed.
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