Shree Ram Smokeless Industries vs. The State Of Bihar And Anr

Held

The Court held that the writ petition could not be granted indulgence. The primary reason was that the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993, which provided the basis for the Entry Tax, stood repealed by virtue of Section 173(1)(b) of the Bihar Goods and Services Tax Act, 2017. The Court noted that the writ petition was filed after the repeal of the law. Consequently, the Court found no merit in the petitioner's challenge to the notification imposing Entry Tax on coal, as the underlying legislation had ceased to exist. The ratio decidendi is that a tax imposed under a repealed statute cannot be enforced, especially when the challenge is raised after the repeal.

Facts

The petitioner, Shree Ram Smokeless Industries, a partnership firm, filed a writ petition before the Patna High Court challenging Notification No. SO 92 dated 25.07.2001. This notification imposed Entry Tax on coal. The petitioner contended that the imposition of Entry Tax was invalid because the relevant law, the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993, had been repealed by Section 173(1)(b) of the Bihar Goods and Services Tax Act, 2017. The writ petition was filed after the repeal of the Entry Tax law. The respondents were the State of Bihar through the Commissioner of Commercial Taxes and the Assistant Commissioner of Commercial Taxes, Aurangabad.

Key Issues

1. Whether Notification No. SO 92 dated 25.07.2001, imposing Entry Tax on coal, remains valid and enforceable in light of the repeal of the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993, by Section 173(1)(b) of the Bihar Goods and Services Tax Act, 2017. Petitioner's Contention: The petitioner argued that the Entry Tax was repealed by the Bihar Goods and Services Tax Act, 2017, and therefore, the notification imposing it was no longer legally effective. They asserted that the writ petition was filed after this repeal, rendering the tax impost invalid. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or state respondents.