Matter to Be Remanded to Assessing Officer to Re-Adjudicate Matter After Considering Exemption Notification | HC

Case Details: Sun Pharma Laboratories Ltd. v. State of Bihar - [2024] 163 taxmann.com 305 (Patna)

Judiciary and Counsel Details

• K. Vinod Chandran, CJ. & Harish Kumar, J.
• Gautam Kumar Kejriwal, Adv. for the Petitioner.
• Vikash Kumar, Adv. for the Respondent.

Facts of the Case

The petitioner was an entity who had installed a solar power project on subletting of a contract obtained from the Bihar State Power Holding Company Limited. It claimed exemption for the materials imported into the State for the said construction. However, the exemption claim was denied by the Assessing Officer on the ground that there was no notification absolving the levy of entry tax during the period in which the construction was carried out. It filed writ petition against the denial of exemption.

High Court Held

The Honorable High Court noted that the Assessing Officer did not notice the notification which exempted the entry tax for the new and renewable energy projects for a period of five years till 10.11.2016. In fact, the validity of notification was also extended by the State Government. Therefore, it was held that the order of assessment was liable to be set aside and the Assessing Officer was directed to consider the matter afresh, especially reckoning the notification and the extension of time provided therefrom.