{"id":235505,"date":"2011-09-22T00:00:00","date_gmt":"2011-09-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/electrosteel-steels-limited-vs-state-of-jharkhand-ors-on-22-september-2011"},"modified":"2016-09-06T17:41:47","modified_gmt":"2016-09-06T12:11:47","slug":"electrosteel-steels-limited-vs-state-of-jharkhand-ors-on-22-september-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/electrosteel-steels-limited-vs-state-of-jharkhand-ors-on-22-september-2011","title":{"rendered":"Electrosteel Steels Limited vs State Of Jharkhand &amp; Ors on 22 September, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Jharkhand High Court<\/div>\n<div class=\"doc_title\">Electrosteel Steels Limited vs State Of Jharkhand &amp; Ors on 22 September, 2011<\/div>\n<pre>                      IN THE HIGH COURT OF JHARKHAND, RANCHI\n                               W.P (T) No. 5000            OF 2011\n         Imperial Fastners Private Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                             With\n                        W.P (T) No. 5450            OF 2011\nAdhunik Power &amp; Natural Resources Ltd. . Vs. The State of Jharkhand &amp; Ors.\n                                             With\n\n                                 W.P (T) No. 5278           OF 2011\n              Electosteel Steels Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                               With\n\n                                 W.P (T) No. 5250             OF 2011\n              Jindal Steel &amp; Power Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                                With\n                               W.P (T) No. 5304           OF 2011\nM\/s.Reliance Communications Infrastructure Pvt. Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                               W.P (T) No. 5305            OF 2011\n     M\/s. Reliance Communications Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                                W.P (T) No. 5318            OF 2011\n      M\/s. Reliance Web Store Pvt. Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                             W.P (T) No. 5578            OF 2011\n          Monte Carlo Construction Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                                W.P (T) No. 5332            OF 2011\n           M\/s.Reliance Infratel Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                              W.P (T) No. 5312             OF 2011\n               M\/s.Reliane BIG TV Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n\n                              W.P (T) No. 5315             OF 2011\n              M\/s. Macronet Pvt. Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                               W.P (T) No. 5341            OF 2011\n     M\/s. Macronet Mercantile Pvt. Ltd. Vs. The State of Jharkhand &amp; Ors.\n                                              With\n                          W.P (T) No. 5311           OF 2011\n              M\/s. Reliance Telecom Ltd. Vs. The State of Jharkhand &amp; Ors.\n\n                                                       -------\n<\/pre>\n<pre>CORAM                             HON'BLE THE CHIEF JUSTICE\n                                  HON'BLE MR.JUSTICE P.P.BHATT\n\n\nFor the Appellant\/Petitioner                    Mr.Sumeet Gadodia\n                                                Mr.B.Podder, Sr.Advocate\n                                                Mr.Indrajit Sinha\n                                                Mr.Piyush Podder\n\nFor the Respondents                      M\/s.A.K.Sinha,A.G,.Rajiv Ranjan,AAG\n                                               Ajit Kumar, AAG\n                                               V.Kumar, S.Rani, Jcs to AAG\n                                               ---------\n  Order No.07                                 Dated 22nd,September, 2011\n\n                 Heard counsel for the parties.\n\n<\/pre>\n<p>                The petitioners have challenged the provision of Section 3 of<\/p>\n<p>the Jharkhand Entry Tax Act on Consumption or Use of Goods Act, 2011 on<\/p>\n<p>the ground that a Division Bench of this Court in the case of Tata Steel<\/p>\n<p>Limited Vs. State of Jharkhand &amp; Ors. reported in [2008] 17 VST 209<\/p>\n<p>(Jharkh) has declared exactly the identical provision made by Section 11 of<\/p>\n<p>the Jharkhand Value Added Tax Act, 2005 as ultra vires to the Constitution<\/p>\n<p>after holding that prior sanction of the President as required under the<\/p>\n<p>proviso to Article 304(b) of the Constitution of India has not been obtained<\/p>\n<p>and after observing that maintaining of roads and providing bridges is not<\/p>\n<p>compensatory in nature so as to constitute special advantage to trade,<\/p>\n<p>commerce and intercourse and after detailed discussion on the issue, the<\/p>\n<p>Division Bench has quashed the said provision.\n<\/p>\n<p>            Against the aforesaid judgment of the Division Bench of this<\/p>\n<p>Court, a SLP has been preferred by the State, but operation of the aforesaid<\/p>\n<p>judgment has not been stayed. Now the State has enacted Act of 2011,<\/p>\n<p>which is nothing but verbatim      rewriting of   earlier law, which has been<\/p>\n<p>quashed. Therefore, the respondent State be        restrained from recovering<\/p>\n<p>any tax from the writ petitioners under the Act of 2011.<\/p>\n<p>            Learned A.A.G vehemently submitted that in earlier round of<\/p>\n<p>litigation, it is true that the said provision of law has been struck down but<\/p>\n<p>SLP is pending. It is also submitted that the matter is, thus, sub-judice and<\/p>\n<p>cannot be said to have attained finality. It is further submitted that in<\/p>\n<p>earlier litigation, since the State failed to produce sufficient evidence to<\/p>\n<p>justify levy of the tax by showing that the amount collected is, in fact,<\/p>\n<p>utilized for the purpose for which it was collected, whereas presently the<\/p>\n<p>State has created funds.\n<\/p>\n<p>            Learned counsel for the petitioners submitted that similar<\/p>\n<p>provision for creation of fund was also in the earlier provision of law.<\/p>\n<p>            However, the aforesaid matter requires consideration and once<br \/>\n       the similar provision has since been struck down by a Division Bench of this<\/p>\n<p>      Court and the matter is pending before the Hon&#8217;ble Supreme Court and the<\/p>\n<p>      State has come up with a new Act during the pendency of this litigation<\/p>\n<p>      before Supreme Court and prima facie, the new provision appears to be<\/p>\n<p>      same with admitted fact that this time also assent has not been obtained<\/p>\n<p>      under Article 304(b) and further looking to the reasons given in the earlier<\/p>\n<p>      orders, we are of the considered opinion that the respondent State be<\/p>\n<p>      restrained from recovering any     amount of tax from the writ petitioners<\/p>\n<p>      under the Act of 2011. However, the writ petitioners shall furnish security<\/p>\n<p>      for the amount to the State from time to time for payment of tax and<\/p>\n<p>      interest, in case they fail to succeed in these petitions. The security be<\/p>\n<p>      submitted within a period of three weeks from today.<\/p>\n<p>                  List these cases for final hearing on 16th November, 2011, as<\/p>\n<p>      the counsel for the petitioners have, for valid reasons, difficulty before that<\/p>\n<p>      day in arguing the matters, at their request, put up these cases on 12th<\/p>\n<p>      December, 2011.\n<\/p>\n<\/p>\n<p>                                          (Prakash Tatia.,C.J.)<\/p>\n<p>                                                  (P.P.Bhatt, J.)<br \/>\ndey\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jharkhand High Court Electrosteel Steels Limited vs State Of Jharkhand &amp; Ors on 22 September, 2011 IN THE HIGH COURT OF JHARKHAND, RANCHI W.P (T) No. 5000 OF 2011 Imperial Fastners Private Ltd. Vs. The State of Jharkhand &amp; Ors. With W.P (T) No. 5450 OF 2011 Adhunik Power &amp; Natural Resources Ltd. . Vs. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,18],"tags":[],"class_list":["post-235505","post","type-post","status-publish","format-standard","hentry","category-high-court","category-jharkhand-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Electrosteel Steels Limited vs State Of Jharkhand &amp; Ors on 22 September, 2011 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/electrosteel-steels-limited-vs-state-of-jharkhand-ors-on-22-september-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Electrosteel Steels Limited vs State Of Jharkhand &amp; 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