9911796707
TMI Blog1996 (10) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... 1981 with effect from April 1, 1981 whereas the first two periods in question (January 1, 1980 to March 31, 1980 and April 1, 1980 to March 31, 1981) were prior to the coming into force of the Act and the matters relating to levy of sales tax imposition of penalty, etc., during those periods were governed by the provisions of the Ordinance preceding the Act. 3.. The material facts of the case can be stated briefly as follows: On June 30, 1981 the dealer's business premises was inspected by a team of Commercial Taxes officials from the Intelligence Branch, Ranchi Division, Ranchi. In course of inspection a number of documents and books of accounts were seized. Following the inspection and seizure and after giving due notice to the dealer, a finding was recorded under section 31(1) of the Act following which a proceeding was initiated for imposition of penalty under sections 19(2)(a) and 20(1)(a) of the Act. In this proceeding an order was passed on September 3, 1981, by the Commercial Taxes Officer, Intelligence Branch, Ranchi Division, Ranchi, imposing an aggregate penalty of Rs. 6,20,016.44 for the aforementioned periods. The periodwise break-up of the penalty was as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estigation to exercise the powers of an authority appointed under section 9 in respect of such matters, as may be specified in the order. (4) The Bureau of Investigation shall function under the control and supervision of the Commissioner, and shall discharge duties as may be assigned to it by the Commissioner, including investigation of offences under section 49 of this part." It may be noted here that the same provisions as quoted above were contained in section 46 of the Ordinance preceding the Act. 5.. On behalf of the dealer, it was contended that in terms of sub-section (2) of section 51 an officer of the Bureau could exercise powers for the purposes of sections 33 and 35 alone of the Act and in the absence of any order issued by the Commissioner and published in the official gazette as provided under subsection (3)(ii), authorising the officer of the Bureau to exercise the powers under sections 19 and 20, the Commercial Taxes Officer, Intelligence Branch, Ranchi was not competent to pass the penalty order against the dealer. 6.. The Tribunal apparently accepted the submission and held that the order of penalty in so far as it related to the period after the coming into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 46 of the Bihar Sales Tax Ordinance, 1976, governing the disputed periods January 1, 1980 to March 31, 1980 and April 1, 1980 to March 31, 1981 contained an identical provision as the one contained in section 51 of the Bihar Finance Act, 1981, and hence the officer of the Intelligence Branch suffered from the same disability and lack of jurisdiction in passing a penalty order in respect of the aforesaid periods by virtue of sub-sections (2) and (3)(ii) of section 46 of the 1976 Ordinance. 8.. It is indeed true that section 46 of the 1976 Ordinance contained the same provisions as contained in section 51 of the Act and in case the dealer's contention on the basis of section 51 of the Act was to be accepted in respect of the period April 1, 1981 to June 28, 1981, there was no reason for not accepting the contention for the earlier periods from January 1, 1980 to March 31, 1980 and from April 1, 1980 to March 31, 1981. 9.. I am, however, firmly of the opinion that the entire argument questioning the authority and jurisdiction of the Commercial Taxes Officer, Intelligence Branch, to make an assessment and to pass an order under sections 19(2) and 20(1) of the Act is founded on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning of section 9 or may not be the officials of the Commercial Taxes Department at all. The section does not intend to divest such members of the Bureau of their powers which they would otherwise possess by virtue of being taxing authorities under section 9 of the Act. 11.. The position would be further clarified if one refers to certain provisions of the Act and the Rules. Section 9(1) contains a list of officers who are recognised by the Act as taxing authorities; Commercial Taxes Officer figures at clause (f) of section 9(1). Sub-section (2) of section 9 provides that the authorities under section 9(1) shall exercise the powers and perform the duties assigned to them under the Act within such area as the State Government may by notification specify. Similar provisions were contained in section 8 of the Ordinance preceding the Act. In exercise of power under section 8(2), the Governor of Bihar, by Notification No. Bikrikar 5162, dated May 9, 1977 defined the local limits of the area within which the authorities enumerated in the notification were to exercise and perform the powers and duties respectively conferred or imposed upon such authorities by or under the Ordinance. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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