1. The petitioner is a Company incorporated under the provisions of the Companies Act. It set up a unit for manufacture of special smokeless fuel (for short, SSF Coke) at Gidha, Koilwar, District Bhujpur. The industry is said to have been established by the petitioner pursuant to the industrial policy framed by the State of Bihar promising various types of incentives, inter alia, to the new industry. According to the petitioner, it has been granted tax exemption certificate from payment of sales tax on the sale of its finished product viz., SSF Coke under the notification dated 22nd December, 1995 issued in exercise of the power under Section 7(3) of the Bihar Finance Act, 1981 (for short, Act, 1981). That the coal/ coke is a notified commodity under the provisions of Act, 1981 for the purpose of levy as well as tax is not in dispute. The exemption granted to the petitioner from payment of sales tax is for a period of ten years from the date of commencement of the production i.e. from 31-8-2000 to 31-8-2010.

2. The Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993 (for short, the Entry Tax Act) came into force in the year, 1993, Sec