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K. VINOD CHANDRAN, PARTHA SARTHY
Secretary-cum-Commissioner of Commercial Taxes Government of Bihar, Vikash Bhawan, Bailey Road, Patna – Appellant
Versus
Gangotri Iron and Steel Co. Ltd. – Respondent
K. Vinod Chandran, CJ.—The issue agitated in the appeal is in a narrow compass, as to whether Industrial Incentive Policy, 2006 (hereinafter referred to as the ‘Policy’) provided for incentive by way of reimbursement of 80% of the Entry Tax (ET) and Central Sales Tax (CST) together with the Value Added Tax (VAT).
2. The learned Single Judge found the issue in favour of the assessee, the writ petitioner, on three grounds. First on the clarification to clause 2(6) of the Policy; providing for ‘Subsidy/Incentive on Value Added Tax’, having stipulated that the incentive would not be payable on the amount imposed as penalty; as also the difference of amounts between tax assessed and accepted under the Central Sales Tax (CST)/Bihar Value Added Tax Act, 2005 (VAT Act) and Bihar Entry Tax Act (ET Act). This, according to the learned Single Judge, clearly indicates that the incentive would be payable on all the three taxes and not on VAT alone. The next reasoning was that in Annexure-III to the Policy; which is the Pass Book to be maintained for the purpose of claiming incentives, there is provision for showing the amount of tax admitted under VAT, CST and ET enactments; which according to t
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