2002 (11) TMI 760 - AT - VAT and Sales Tax

Summary

Issues:
1. Applicability of proviso 2, section 79 of the West Bengal Sales Tax Act, 1994 in appeal for the period before March 31, 2000.
2. Legality of rejecting the appeal based on non-payment of 20% disputed tax amount.
3. Interpretation of the right of appeal in light of the amendment of section 79.
4. Admissibility of appeal under the pre-existing right of appeal.

Analysis:

Issue 1:
The petitioner sought a declaration that proviso 2, section 79 of the West Bengal Sales Tax Act, 1994 is not applicable in appeal for the period prior to March 31, 2000. The contention was that the right of appeal accrued before the amendment came into effect on April 1, 2002. The petitioner argued that since the return was filed before the amendment, the provisos of section 79 should not apply retrospectively.

Issue 2:
The appellate authority rejected the appeal on the grounds of non-payment of 20% of the disputed tax amount, as mandated by the amended Act effective from April 1, 2002. The petitioner challenged this decision, citing the lack of retrospective effect given to the provisos of section 79. The State Representative defended the decision, stating that the demand for payment was in line with the amended Act.

Issue 3:
The Tribunal considered whether the right of appeal is a pre-existing right unaffected by the amendment of section 79. Citing legal precedents, including Hoosein Kasam Dada (India) Ltd. v. State of Madhya Pradesh, the Tribunal analyzed the nature of the right of appeal as a substantive right, not merely procedural. The Tribunal emphasized that the right of appeal becomes vested at the initiation of proceedings, supporting the continuation of the old law in such cases.

Issue 4:
Relying on the principles established by the Supreme Court in various cases, the Tribunal held that the right of appeal is a vested right that cannot be taken away by subsequent enactments unless expressly provided. The Tribunal found that the rejection of the appeal and the direction for liquidation of the demand were not in accordance with the settled principles of law. Consequently, the Tribunal allowed the application, directing the appellate authority to admit the appeal and dispose of it in accordance with the law.

In conclusion, the Tribunal's judgment centered on the pre-existing right of appeal, the retrospective application of statutory provisions, and the fundamental principles governing the right of appeal as a substantive right. The decision emphasized the need for proper interpretation of legal provisions and adherence to established legal principles in tax appeal cases.