Bihar Sales Tax Rules, 1983

M/s Eureka Forbes Ltd., the appellant, challenged the assessment of sales tax on its vacuum cleaners for the years 1990-91 to 1993-94, contending that the product should be taxed at the standard 8% rate. The State of Bihar, relying on Entry 81 of the Notification dated 26-12-1977 issued under Section 12 of the Bihar Fi…

Larsen & Toubro Ltd. filed returns under the Bihar Finance Act, 1981 for AY 1991‑92 and received an assessment order in 1996. An audit by the Auditor General identified an exemption of Rs 3.12 crore for consumables that, in the auditor’s view, should have been taxed, leading to a show‑cause notice in 2000 and a re‑asse…

Steel City Beverages Ltd., a soft‑drink manufacturer, claimed deferment of sales‑tax on its investment in bottles and crates under the Bihar Sales Tax Supplementary (Deferment of Tax) Rules, 1990. The District Level Committee granted deferment on 90% of its fixed capital investment but excluded bottles and crates, a de…

Universal Hydrocarbons Co. Ltd. purchased raw petroleum coke (RPC) and, after a manufacturing process, produced calcined petroleum coke (CPC). Sales tax was levied on the sale of CPC under the Bihar Finance Act, 1981 and the Central Sales Tax Act, 1956. The company claimed a refund under Section 15(b) of the Central Sa…

The Supreme Court considered whether the sales‑tax exemption granted to industrial units under Bihar’s 1995 Industrial Policy (S.O. 478 dated 22‑12‑1995) survived the bifurcation of Bihar and the creation of Jharkhand. The Court held that Sections 84 and 85 of the Bihar Reorganisation Act, 2000 expressly continue all l…

M/s BOC India Ltd., a manufacturer and dealer of oxygen gas, supplied the gas to M/s Tata Iron & Steel Co. Ltd. (TISCO) for steel production. Oxygen was listed in BOC's registration certificate as a good taxable at 3%, but later notifications reduced the rate for raw materials used directly in manufacture to 2%. BOC be…