1991 (9) TMI 343 - AT - VAT and Sales Tax

Summary

Issues:
Challenge to order of assessment, appellate order, and revision order by West Bengal Commercial Taxes Tribunal.

Analysis:
The case involves an application under Article 226 of the Constitution transferred to the West Bengal Taxation Tribunal for disposal. The applicants contested the order of assessment, appellate order, and revision order by the West Bengal Commercial Taxes Tribunal on two grounds. Firstly, challenging the remand of the review case by the West Bengal Commercial Taxes Tribunal regarding the disallowance of a claim under section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941. Secondly, contesting the imposition of a penalty reduced by the appellate authority. The respondents contested the application by filing an affidavit-in-opposition.

The Tribunal found that the West Bengal Commercial Taxes Tribunal was not justified in sending back the review case on remand. It was observed that a suo motu review should not have been done by the respondent No. 2 before the expiry of the review application period by the applicants. The Tribunal held that the order for suo motu review, passed before the expiry of the review application period, violated the relevant rules and was set aside. Regarding the penalty imposition, the Tribunal upheld the decision of the West Bengal Commercial Taxes Tribunal, stating that there was no scope for further reduction of penalty based on the nature of default and materials placed before the authority.

Conclusively, the application was allowed in part, setting aside the suo motu review order and the decision to send back the review case on remand. The decision of the West Bengal Commercial Taxes Tribunal regarding the appellate order was affirmed. The main application was disposed of with no order as to costs.