1989 (9) TMI 363 - AT - VAT and Sales Tax

Summary

Issues: Jurisdiction of the Tribunal under the Central Sales Tax Act

In this judgment, the applicant challenged the validity of assessment under section 9(2) of the Central Sales Tax Act, 1956, read with section 11(1) of the Bengal Finance (Sales Tax) Act, 1941, for four quarters ending 30th June, 1981. The main issue was whether the Tribunal had the jurisdiction to entertain the application for disposal. The applicant argued that the Tribunal had the jurisdiction based on the case of Tek Chand Daulat Rai v. Excise and Taxation Officer, Ferozepore, which stated that the procedural provisions for assessment of tax and imposition of penalties under the Central Act would be the same as given in the State law. However, the Tribunal held that its jurisdiction was limited to the Acts enumerated in the Schedule to the West Bengal Taxation Tribunal Act, 1987, and since the Central Sales Tax Act was not included, the Tribunal was not competent to entertain the case for disposal.

The Tribunal noted that for the purpose of assessment under section 9 of the Central Sales Tax Act, the procedure as provided in the Bengal Finance (Sales Tax) Act, 1941, was followed. This was due to the powers conferred by article 258(2) of the Constitution, allowing Parliament to confer powers on States for administering laws related to matters outside the State's legislative powers. Section 9(2) of the Central Sales Tax Act utilized the hierarchy of functionaries under the State Act for assessment purposes. However, the Tribunal clarified that it was established under the West Bengal Taxation Tribunal Act, 1987, and its jurisdiction was limited to the Acts listed in the Schedule to the Act. Since the Central Sales Tax Act was not included in the Schedule, the Tribunal could not exercise jurisdiction over it. The Tribunal emphasized that its jurisdiction was defined by the Act itself, and it could not be considered a functionary under the Bengal Finance (Sales Tax) Act, 1941.

The Tribunal concluded that, as the case was exclusively governed by the Central Sales Tax Act, it lacked the competence to entertain it for disposal. Therefore, the application was directed to be returned to the filing advocate for presentation to the appropriate forum. The Tribunal clarified that it was not expressing an opinion on cases involving the Central Sales Tax Act and any Acts listed in the Schedule to the West Bengal Taxation Tribunal Act, 1987.