1987 (3) TMI 503 - HC - VAT and Sales Tax

Issues Involved:
1. Dismissal of the writ petition due to the availability of an alternative forum.
2. Seizure of documents by the sales tax authorities.
3. Cancellation of the registration certificate without prior notice.
4. Refusal to issue declaration forms.
5. Allegation of mala fides on the part of the revisional authorities.
6. Request for interim reliefs, including stay of the order and issuance of declaration forms.

Detailed Analysis:

1. Dismissal of the Writ Petition Due to the Availability of an Alternative Forum:
The writ petition was dismissed by a learned single Judge on the ground that the petitioners had an alternative forum in the form of revision provided under the Bengal Finance (Sales Tax) Act. The petitioners argued that the learned trial Judge did not consider the allegations of mala fides against the revisional authorities.

2. Seizure of Documents by the Sales Tax Authorities:
The petitioners' business premises were searched by the sales tax authorities, resulting in the seizure of several documents, including four declaration forms. The petitioners contended that the seizure was conducted without proper jurisdiction and that repeated attempts to retrieve the documents were unsuccessful.

3. Cancellation of the Registration Certificate Without Prior Notice:
The registration certificate of the petitioners' firm was canceled on the belief that the business was not being carried on from the declared place of business. The petitioners argued that no prior notice was served before the cancellation, and the cancellation was based on visits by the Commercial Tax Officer and an Inspector, which were disputed by the petitioners.

4. Refusal to Issue Declaration Forms:
The refusal to issue declaration forms was based on the cancellation of the registration certificate. The petitioners argued that the cancellation was doubtful and that other grounds for refusal under the statutory provision were not applicable. They contended that the refusal of declaration forms would force them to discontinue their business.

5. Allegation of Mala Fides on the Part of the Revisional Authorities:
The petitioners alleged mala fides on the part of the revisional authorities, arguing that the authorities were deliberately delaying the hearing of the revisional applications. The revisional authorities did not dispute the allegations made in the writ application, leading to an inference of mala fides.

6. Request for Interim Reliefs:
The petitioners sought interim reliefs, including a stay of the operation of the order of the learned single Judge, an injunction restraining the respondents from giving effect to the cancellation of the registration, and a direction to issue declaration forms for the period of December 1985 and January 1986. The court considered the existence of a prima facie case and balance of convenience, concluding that arguable issues were raised and the balance of convenience favored the petitioners.

Interim Reliefs Granted:
- The respondents were directed to issue declaration forms for the sales effected between December 1985 and January 1986, subject to the petitioners depositing cash or furnishing bank guarantees equivalent to the value of declarations claimed and the amount of tax that might become payable if the disputed sales were found taxable.
- Further proceedings in the revisional cases were stayed until the disposal of the appeal, but the respondents were allowed to proceed with the cases through an officer other than the one accused of mala fides.
- The operation of the impugned order of the learned trial Judge was stayed to the extent indicated.
- The hearing of the appeal was expedited, and the new application for registration filed by the petitioners was to be disposed of with reasonable expedition.

Conclusion:
The court provided interim reliefs to safeguard the interests of both parties, ensuring that the petitioners could continue their business while protecting the revenue authorities' interests. The allegations of mala fides and the questionable cancellation of the registration certificate were significant factors in granting the interim reliefs. The appeal was expedited to ensure a timely resolution of the issues.

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