1956 (12) TMI 30 - HC - VAT and Sales Tax

Summary

Issues:
- Jurisdiction of the Board of Revenue to entertain a petition against the order of the Commissioner of Sales Tax under section 21 of the Bihar Sales Tax Act.

Analysis:
The case involved a petitioner, Messrs S.C. Coondoo & Co., who was directed by the Superintendent of Commercial Taxes, Patna, to register as a dealer under the Bihar Sales Tax Act. The petitioner contended that it had no business premises in Bihar and argued that all sales in Bihar should be considered inter-State sales under Article 286(2) of the Constitution. The Commissioner of Sales Tax rejected the petitioner's application based on previous court decisions. The petitioner then applied for revision before the Board of Revenue, which was denied on the grounds that no revision lay against the Commissioner's order under section 21 of the Act. The Board of Revenue referred the question of jurisdiction to the High Court.

The main argument put forward by the petitioner was that the Commissioner's order was subject to revision by the Board of Revenue under section 24(5) of the Bihar Sales Tax Act. The government advocate, however, contended that the Commissioner's order under section 21 was advisory and not judicial, hence not subject to revision. The High Court disagreed with the government advocate, stating that the Commissioner's power under section 21 was quasi-judicial in nature. Section 21 empowered the Commissioner to determine disputes between the assessee and the Sales Tax Department, affecting the liability of the assessee or tax quantum.

The High Court held that the Commissioner's determination under section 21 constituted an order covered by section 24(5) of the Act, allowing for revision by the Board of Revenue. Even though the word "order" was not explicitly used in section 21, the formal determination by the Commissioner qualified as an order. The Court also highlighted the powers granted to the Commissioner under section 22, reinforcing the quasi-judicial nature of the Commissioner's role. Therefore, the High Court concluded that the Board of Revenue had jurisdiction to entertain a petition against the Commissioner's order under section 21 of the Act, ruling in favor of the petitioner.

In conclusion, the High Court answered the question of law in favor of the petitioner, establishing that the Board of Revenue indeed had the jurisdiction to review the Commissioner's order under section 21 of the Bihar Sales Tax Act. The hearing fee was assessed at Rs. 200, and the reference was answered accordingly.