1965 (11) TMI 138 - HC - VAT and Sales Tax

Summary

Issues:
Challenge against sales tax assessment and penalty imposition under section 11(4B) of the Bengal Finance (Sales Tax) Act, 1941 based on delegation of powers.

Analysis:
The petitioner challenged an order of sales tax assessment and a penalty notice under section 11(4B) of the Bengal Finance (Sales Tax) Act, 1941. The challenge was limited to grounds I, II, and VII. The petitioner obtained partial relief against the tax assessment during the proceedings. The argument centered around the delegation of powers under rule 71 of the Bengal Sales Tax Rules. The petitioner's counsel contended that the existing delegation did not cover the power conferred by section 11(4B) as it was not part of the statute when the delegation was made in 1954.

The court examined the delegation provisions under section 15 of the Act and rule 71 of the Bengal Sales Tax Rules. The Commissioner had delegated powers to Commercial Tax Officers, including the authority to make assessments and impose penalties under section 11. The petitioner argued that since section 11(4B) was introduced in 1961, a fresh delegation was necessary for this specific power. However, the court disagreed, citing a previous judgment that upheld a broad delegation under section 11, encompassing the power to assess and impose penalties, regardless of subsequent amendments to the section.

The court also rejected the petitioner's argument that the Commissioner could delegate powers but not duties under section 11(4B). It held that section 11(4B) conferred a power with an accompanying duty, which fell within the scope of the delegation made to the Commercial Tax Officers. The court drew inspiration from a Supreme Court decision and found no conflict with previous decisions cited by the petitioner. Consequently, the court discharged the Rule with costs, upholding the authority of the Commercial Tax Officer to make the assessment and impose penalties under section 11(4B).