1990 (1) TMI 266 - AT - VAT and Sales Tax

Summary

Issues:
1. Disallowance of declaration forms for the sale of motor parts by the Commercial Tax Officer.
2. Rejection of claim for the remaining amount by the West Bengal Commercial Taxes Tribunal.
3. Appeal against the Tribunal's decision.

Analysis:
The case involves a dispute regarding the disallowance of declaration forms for the sale of motor parts by the Commercial Tax Officer. The applicant, a manufacturer supplying motor parts exclusively to Hindusthan Motors Limited, faced disallowance of declaration forms totaling Rs. 10,23,549.08 during the assessment period ending June 30, 1976. The applicant contended that fresh declaration forms were procured from the company and should be considered during the appeal. However, the Assistant Commissioner and subsequently the West Bengal Commercial Taxes Tribunal rejected the claim for the remaining amount, citing amendments to the purchase order made two years after the last supply without novation of the contract during the transaction.

The Appellate Tribunal, after hearing both parties, suggested remitting the matter back to the Commercial Tax Officer for a fresh consideration. The Tribunal emphasized that the fresh declaration forms, disallowed by the lower Tribunal, should not be rejected solely based on their procurement timing or the amendment of the original purchase order after a significant period. Both parties agreed to this procedure, leading to the decision to set aside the assessment order of the Commercial Tax Officer dated April 30, 1979. The matter was remitted back to the Commercial Tax Officer for a fresh assessment, directing consideration of all fresh declaration forms, regardless of when they were procured or if the purchase order was amended later. The Commercial Tax Officer was instructed to complete the fresh assessment within one year.

In conclusion, the appeal was allowed, and the case was disposed of by remitting it back to the Commercial Tax Officer for a fresh assessment. The Tribunal's decision to reject the claim for the remaining amount was overturned, and the Commercial Tax Officer was directed to consider all fresh declaration forms without regard to their timing of procurement or the amendment of the original purchase order. The case was resolved without any order as to costs.