2005 (3) TMI 742 - AT - VAT and Sales Tax

Summary

Issues:
Application under section 8 of the West Bengal Taxation Tribunal Act, 1987 against inaction of the Commercial Tax Officer to reopen deemed assessment for the period ending March 31, 1999 based on eligibility certificate for remission of tax.

Analysis:
The petitioner established a new unit for manufacturing rice and rice bran, and after a lengthy process, an eligibility certificate for remission of tax was issued for the period from April 30, 1998 to April 29, 2004. However, the assessment for the period ending March 31, 1999 was made without considering the eligibility certificate, leading the petitioner to deposit a significant amount of tax.

The petitioner requested multiple times for the assessment to be reopened based on the eligibility certificate, but the respondents were unwilling, citing lack of authority to reopen an assessment held under section 46A. The petitioner argued that the eligibility certificate was issued retrospectively and should absolve them from the tax liability for the relevant period.

After considering both sides, the Tribunal found that the petitioner, having obtained the eligibility certificate, was not liable to pay tax for the period in question. The Tribunal directed the assessment to be reopened, taking into account the eligibility certificate, and ordered the Commercial Tax Officer to dispose of the matter promptly.

In conclusion, the Tribunal allowed the application, directing the reopening of the assessment for the specified period and emphasizing the importance of considering the eligibility certificate in determining the tax liability. The decision was made without imposing any costs on the parties involved.