1999 (8) TMI 945 - AT - VAT and Sales Tax

Summary

Issues:
1. Claim of exemption under section 5(7) of the Bengal Finance (Sales Tax) Act, 1941.
2. Requirement of specific mention of purchase prices and supporting documents for exemption claim.

Analysis:
1. The applicant, a partner in a firm making purchases from outside West Bengal, claimed exemption under section 5(7) of the Bengal Finance (Sales Tax) Act, 1941. The grievance was that despite raising the claim in the appeal memo, both the assessing officer and the appellate authority did not delve into the question of exemption. The applicant contended that the appellate authority disposed of the matter without addressing the specific plea regarding the purchase price. The applicant had consistently made purchases from outside India and never within West Bengal. The Commercial Taxes Appellate and Revisional Board also failed to consider the applicant's submissions and documents supporting the purchases made outside the state. The applicant argued that all authorities disregarded this crucial aspect despite clear assertions by the applicant throughout the proceedings.

2. On the other hand, the respondents' counsel emphasized that to claim exemptions under section 5(7) of the Act, a dealer must expressly state the specific purchase prices, provide supporting documents, and detail the grounds for tax exemption. In this case, the applicant-firm merely stated a "nil" specific purchase price without furnishing a statement of purchases or any supporting documentation. Consequently, the assessing authority rightfully rejected the claim for tax exemption on specific purchase prices due to the lack of necessary information and documentation.

3. Upon considering the arguments from both sides, the Tribunal acknowledged the necessity for a dealer to disclose specific purchase prices and the nature of the exemption claim to enable a thorough assessment by the assessing officer. However, in light of the applicant's consistent purchases from outside West Bengal and the failure of authorities to consider the supporting documents, the Tribunal deemed it appropriate to remand the matter back to the assessing officer for a detailed reconsideration. The Tribunal held that the applicant should not be deprived of the exemption if entitled under the law. The assessing officer was directed to reevaluate the case based on the applicant's detailed statement of purchases and supporting documents within a specified timeframe.

4. Consequently, the Tribunal set aside the impugned orders of the respondents and remanded the case to the assessing officer for a fresh assessment. The applicant was instructed to provide a comprehensive statement of purchases with supporting documents and specify the grounds for claiming exemption. The assessing authority was mandated to conduct a fresh assessment within sixteen weeks of receiving the necessary documentation. No costs were awarded, and the case was remanded for further proceedings.