1996 (2) TMI 522 - AT - VAT and Sales Tax

Summary

Issues:
1. Review application under section 16 of the West Bengal Taxation Tribunal Act, 1987.
2. Legality of the stay order dated February 23, 1996.
3. Mistake apparent from the record for rectification.
4. Interpretation of section 8(7)(b) of the West Bengal Taxation Tribunal Act, 1987.

Analysis:

The judgment pertains to a review application under section 16 of the West Bengal Taxation Tribunal Act, 1987, seeking a review of the order dated February 23, 1996. The applicant requested a stay on the demand of penalty of Rs. 70,000, subject to making a deposit of Rs. 35,000 as security within two weeks. The stay order was conditional and had a default clause in case of non-compliance with the deposit requirement. The review application contested the legality of the stay order, alleging it was contrary to section 8(7) of the Act and frustrated the purpose of the appeal by allowing recovery proceedings to continue during the appeal's pendency.

The review application argued for rectification of a mistake apparent from the record, citing various legal precedents, including the case of Income-tax Officer v. Mohammed Kunhi [1969] 71 ITR 815 (SC). The State Representative contended that no mistake was apparent from the record, opposing the review application on that ground. After considering the arguments, the Tribunal found that there was no mistake apparent from the record. The Tribunal interpreted section 8(7)(b) of the Act, stating that the provision allowing for security was not limited to tax recovery cases but extended to penalties as well. The Tribunal emphasized its inherent powers to demand security for passing interim orders, depending on the circumstances of each case.

In conclusion, the Tribunal dismissed the review application, ruling that no mistake was evident from the record filed under section 16 of the Act. The judgment highlighted the Tribunal's jurisdiction comparable to the High Court in matters under the Constitution of India and the Act. Additionally, the judgment addressed procedural issues regarding the acceptance of review applications, emphasizing compliance with the West Bengal Taxation Tribunal Rules and Regulations to avoid delays. The review application was dismissed without costs, and the Tribunal noted the necessity of annexures and proper verification of petitions for future reference.