1989 (6) TMI 271 - AT - VAT and Sales Tax

Summary

Issues:
1. Disallowance of claim under section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941.
2. Imposition of penalty for late filing of quarterly returns.
3. Dispute regarding the tax rate on the sale of a lorry.
4. Allegation of lack of reasonable opportunity for the applicant to be heard.
5. Adequacy of the appellate authority's judgment.

Analysis:
1. The case involved a dispute over the disallowance of a claim under section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941. The assessing officer accepted a gross turnover but disallowed a significant portion of the claim due to payments made by bearer cheques. The appellate authority upheld part of the decision but remitted the case to reconsider the tax rate on the sale of a lorry. The Tribunal partly allowed the revision, setting aside the appellate authority's judgment and remitting the case for proper assessment.

2. A penalty of Rs. 25 was imposed for late filing of quarterly returns, which was not a major point of contention in the appeal process.

3. The dispute regarding the tax rate on the sale of a lorry was a significant issue. The Tribunal found that the appellate authority had not properly considered this aspect and remitted the case for a fresh decision after providing the applicant with an opportunity to be heard.

4. The applicant alleged a lack of reasonable opportunity to be heard before the appellate authority. The Tribunal examined affidavits and counter-affidavits to determine the validity of this claim. It concluded that the appellate authority had disposed of the appeal in a cursory manner, failing to apply his mind adequately to the facts of the case.

5. The adequacy of the appellate authority's judgment was questioned, with the Tribunal finding that the officer had not properly considered the claim under section 5(2)(a)(ii) of the Act. The Tribunal held that the entire matter should be reconsidered by the appellate authority to ensure a proper assessment and judgment after giving the applicant a fresh opportunity to present their case.