2007 (1) TMI 520 - AT - VAT and Sales Tax

Summary

Issues involved:
Challenge to notice under section 71B of the West Bengal Sales Tax Act, 1994 for transportation of goods in contravention of section 68.

Detailed Analysis:

1. Factual Background and Legal Obligations:
The petitioner, a partnership firm, operates as a customs clearing authority and forwarding agent at a sea-port. The firm receives imported goods, arranges customs clearance, pays custom duty, and hands over goods to transporters or importers for further transportation. The petitioner received a notice under section 71B of the West Bengal Sales Tax Act, 1994, alleging transportation of goods in violation of section 68.

2. Contentions and Denials:
The petitioner denied liability post-handover of goods to transporters, but under protest, deposited a sum of Rs. 1 lakh. Respondents contested the petitioner's claims and asserted that the firm signed declarations, received countersigned declarations, and cleared goods from sales tax authorities, making them liable for violations.

3. Legal Analysis of Petitioner's Actions:
The Tribunal noted that the petitioner signed required declarations under rule 211A of the West Bengal Sales Tax Rules of 1995 for consigned goods dispatched from outside West Bengal to a destination outside the state. Despite the petitioner's claims of acting solely as a customs clearing agent, the absence of specific importer or transporter details and documentation to support their role weakened their case.

4. Jurisdictional Challenges and Legal Principles:
The petitioner challenged the authority of the Assistant Commissioner to issue the notice under section 71B, citing lack of delegation by the Commissioner. However, the Tribunal found that the Commissioner had delegated such powers to the Assistant Commissioner, making the notice legally valid.

5. Conclusion and Dismissal of Application:
After thorough examination of facts, legal provisions, and delegation orders, the Tribunal concluded that the notice issued by the Assistant Commissioner was lawful. The application under section 8 of the West Bengal Taxation Tribunal Act, 1987 was dismissed for lack of merit, without imposing any costs.

In summary, the Tribunal upheld the validity of the notice issued under section 71B of the West Bengal Sales Tax Act, 1994, rejecting the petitioner's contentions regarding their role as a customs clearing agent and jurisdictional challenges against the Assistant Commissioner's authority to issue the notice.