2003 (11) TMI 581 - AT - VAT and Sales Tax

Summary

Issues:
Challenge to assessment order under West Bengal Sales Tax Act, 1954 for the period 12 M.E.K.B. 14th 2044 S.Y.; Dispute over levy of tax at 15% instead of 7%; Contestation of notice for payment of tax and interest issued before statutory period; Dispute regarding imposition of interest and penalty; Interpretation of notifications regarding taxation of crockery made of stoneware.

Analysis:
The application challenged the assessment order dated October 28, 1991, and subsequent orders in appeal and revision for the period 12 M.E.K.B. 14th 2044 S.Y. under the West Bengal Sales Tax Act, 1954. The petitioner, a partnership firm, contested the imposition of tax at 15% instead of 7%, along with issues related to notice issuance, interest, and penalty. The dispute centered around the interpretation of notifications regarding the taxation of crockery made of stoneware.

The Assistant Commissioner upheld the order, citing a new notification taxing all crockery at 15% from April 1, 1984. The petitioner filed a revision petition, which confirmed the tax liability at 15% for the assessment period related to 1987. However, the Board acknowledged the lack of adequate notice issuance and allowed for a fresh demand notice according to the law.

The petitioner argued that stoneware crockery was initially taxed at 7% under the 1954 Act and cited various notifications to support this claim. The legal representative highlighted the historical tax rates and notifications to establish the petitioner's position on the taxation of stoneware crockery.

The judgment analyzed the evolution of tax rates and notifications concerning crockery made of stoneware. It was determined that the petitioner was liable to pay tax at 15% from April 1, 1984, under Notification No. 1022-F.T. dated March 29, 1984. The appellate authority and the Board's orders were upheld, with a provision for a fresh demand notice due to the denial of adequate opportunity.

In conclusion, the judgment affirmed the applicability of the West Bengal Sales Tax Act, 1954 at the relevant time and justified the levy of tax at 15% on stoneware crockery. The petitioner's plea for a lower tax rate was dismissed, and the matter was referred back for necessary action regarding the demand notice.

The judgment, delivered by the Appellate Tribunal West Bengal Taxation Tribunal, provided a detailed analysis of the issues raised by the petitioner regarding the assessment, tax rates, notifications, and procedural aspects under the West Bengal Sales Tax Act, 1954.