2022 (7) TMI 571 - HC - VAT and Sales Tax

Jurisdiction - power of authority of the Special Commissioner of Revenue, West Bengal to issue notice to the petitioner dealer, proposing to review and / or revise the final Audit cum Assessment order dated 7.2.2017 which was subsequently reviewed on 7.7.2017 by exercising its suo motu powers - HELD THAT - This Court is of the view that various factual as well as legal issues are to be decided. Notice dated March 22, 2022 was issued on the ground of short levy of tax. Accordingly, this Court is of the considered view that the interest of justice will be subserved if liberty is granted to the petitioner to approach the authority concerned by filing an objection to the said notice raising therein all points both factual as well as legal including the issue of jurisdiction of the third respondent to issue such notice. Two weeks time is granted to the petitioner to file objection to the proposed order contained in the notice dated March 22, 2022 raising all points legal, factual and jurisdictional issue. If such objection is filed within the aforesaid time limit, the Special Commissioner of Revenue, West Bengal being the third respondent is directed to conclude the said proceeding initiated by issuance of the notice dated March 22, 2022 after giving an opportunity of hearing to the petitioner or his authorized representative and by passing a reasoned order which shall be communicated to the petitioner.

Summary

Issues Involved:
Challenge to authority of Special Commissioner of Revenue to issue notice for review of final Audit cum Assessment order.

Analysis:
The petitioner challenged the authority of the Special Commissioner of Revenue to issue a notice proposing to review and revise the final Audit cum Assessment order. The petitioner's counsel argued that the respondent authority was trying to delay the refund of input tax credit by repeatedly issuing show cause notices. On the other hand, the revenue's counsel stated that the revision was done in accordance with the West Bengal Value Added Tax Act, 2005, due to the detection of short levy of tax. The Court noted the need to decide various factual and legal issues, including the jurisdiction of the third respondent to issue such a notice.

The petitioner sought to set aside the notice proposing to revise the final audit report cum assessment order due to the alleged short levy of tax. The Court granted the petitioner two weeks to file objections to the proposed order, raising all legal, factual, and jurisdictional issues. It directed the Special Commissioner of Revenue to conclude the proceeding after considering the objections and providing an opportunity for a hearing. The entire process was to be completed within three weeks from the date of filing the objections.

If the petitioner failed to file objections within the specified time, the Special Commissioner of Revenue was directed to conclude the proceeding within three weeks from the expiry of the objection filing period. The case was disposed of with these directions, and no costs were awarded. The Court ordered the expeditious provision of a certified copy of the order to the parties upon compliance with legal formalities.