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TMI Blog1985 (8) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... eptember, 1975, made absolute in part the rule obtained by the Bengal Potteries Ltd. against the aforesaid two orders withholding declaration forms. The learned judge has held that the Commercial Tax Officer had no jurisdiction to impose any restriction or condition for obtaining declaration forms in terms of section 8(4) of the Central Sales Tax Act, 1956. The trial Judge pronounced as invalid rule 4(2) of the Central Sales Tax (West Bengal) Rules, 1958, which makes rule 27AA of the Bengal Sales Tax Rules applicable in case of issue of declaration forms referred to in section 8(4) of the Central Sales Tax Act, 1956, read with the Central Sales Tax (Registration and Turnover) Rules, 1957. The learned Judge directed the Commercial Tax Officer to reconsider the writ petitioner's application for granting declaration forms under the Central Sales Tax Act, 1956, in accordance with law. The learned trial Judge, however, rejected the petitioner's further contention that rule 27AA of the Bengal Sales Tax Rules, 1941, was also ultra vires section 5(2) of the Bengal Finance (Sales Tax) Act, 1941, and the Commercial Tax Officer had no jurisdiction to withhold issue of declaration forms even u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch manner subject to such conditions and restrictions as may be prescribed", in exercise of powers under section 13(3) and (4) of the Central Sales Tax Act, the Governor of West Bengal could not adopt rule 27AA of the Bengal Sales Tax Rules and impose restriction and condition for obtaining declaration forms under section 8(4) of the Central Sales Tax Act, 1956. We regret that we are unable to uphold the trial Judge's view that rule 4(2) of the Central Sales Tax (West Bengal) Rules which makes rule 27AA of the Bengal Sales Tax Rules applicable, was beyond the competence of the State Government's rule-making power. Both K.L. Roy, J., and Sabyasachi Mukharji, J., in their respective judgments had referred in the decision of D.N. Sinha, J. (as he then was), in the case of S.N. Sugar Mills v. Commercial Tax Officer (1961) 65 CWN 1039. D.N. Sinha, J., inter alia, held that even after enactment of the Bengal Finance (Sales Tax) (Amendment) Act, 1959, the Commercial Tax Officer under section 5(2) of the Bengal Finance (Sales Tax) Act could only check whether the transactions were real and whether the declaration forms would be confined to transactions and sales inside West Bengal. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g such declaration forms would be found in section 13(4)(e) of the Central Sales Tax Act. The different sub-sections of section 13 of the Central Sales Tax Act deal with power to make rules which is shared by the Central and the State Governments. The Central Government under sub-section (1) of section 13 of the Act, may make rules for providing for the matters specified in the said sub-section. The State Government under section 13(3) of the said Act may make rules not inconsistent with the provisions of the Act and the Rules made under sub-section (1) of section 13 of the Central Act. Sub-section (4) of the section mentions some of the purposes for which the State Government may make such rules. Clause (e) of section 13(4) deals with the scope of rules which may be made in respect of issue of declaration forms. The original clause (e) of sub-section (4) of section 13 was amended by section 9(ii) of the Central Sales Tax (Second Amendment) Act, 1958 (Act 31 of 1958), by first time inserting the words "the authority from whom, the conditions subject to which and the fees subject to payment of which". Thus, the scope of the said clause (e) was enlarged by empowering the State Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harya does not dispute that before issuing declaration forms under section 8(4) of the Central Sales Tax Act the Commercial Tax Officer may lawfully invoke the said sub-rules (1) and (2)(a) and (b) of rule 27AA, sub-rules (1), (2)(a) and (b) of rule 27AA in any view cannot be considered as ultra vires section 8(4) of the Central Sales Tax Act. Accordingly at least to the said extent rule 4(2) of the Central Sales Tax (West Bengal) Rules cannot be declared as ultra vires. In our view, rule 4(2) of the Central Sales Tax (West Bengal) Rules also lawfully made rule 27AA(2)(c) applicable to issue of declaration forms referred to in section 8(4) of the Central Sales Tax Act. Thus, provisions of sub-rule (2)(c) of rule 27AA of the Bengal Sales Tax Rules are in the nature of conditions within the meaning of section 13(4)(e) of the Central Sales Tax Act. Therefore, the State Government was fully competent to make the entire rule 27AA applicable to issue of declaration forms under section 8(4) of the Central Sales Tax Act. The expression "condition" in ordinary parlance, inter alia, means something demanded or required as prerequisite to the granting or performance of something else, a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said reported decision rule 4(2) of the Central Sales Tax (West Bengal) Rules ought not to have been struck down. The learned trial Judge, in his judgment, no doubt, has mentioned section 13(4)(e) of the Central Sales Tax Act, but with respect, did not correctly consider the import and effect of the said provision. Under clause (e) of subsection (4) of section 13 of the Central Sales Tax Act the State Government was fully competent to prescribe by rule, inter alia, the conditions for issue of declaration forms under section 8(4) of the said Act. Therefore, the State Government could lawfully frame or adopt a rule by laying down prerequisites for issue of declaration forms. Therefore, rule 27AA(2)(c) of the Bengal Sales Tax Rules has been lawfully made applicable by rule 4(2) of the Central Sales Tax (West Bengal) Rules. Absence of authority to prescribe such Rules in section 8(4) of the Central Sales Tax Act is not fatal. Therefore, we conclude that the Commercial Tax Officer had jurisdiction to direct that unless the dealer, i.e., the writ petitioner, submitted returns under the Central Sales Tax Act, no declaration form referred to in section 8(4) of the said Act would be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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