9911796707
TMI Blog1997 (2) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. In a penalty proceeding started subsequently by the respondent No. 3, a penalty of Rs. 83,085 was imposed on the plea that the consignment was being imported in contravention of the provision of section 4B of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as "the 1941 Act"). The contention of the applicant is that the commodity in question not being a notified goods either under the 1941 Act or under the West Bengal Sales Tax Act, 1954 (hereinafter referred to as "the 1954 Act"), the question of obtaining permit does not arise. On appeal against the said order imposing penalty, the appellate authority (respondent No. 2) rejected the plea but reduced the penalty to Rs. 65,000. Even the West Bengal Commercial Taxes Appellate and Revisional Board in exercising its revisional jurisdiction did not find any ground to interfere with the order of the appellate authority. The applicant has, therefore, filed the instant application before this Tribunal challenging the legality of the order of the respondent No. 3 imposing penalty and the orders of the respondents Nos. 2 and 1 passed in the appeal and the revision respectively. Its specific case is that the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is subjected to any further processing such as "extrusion coating" (i.e., process of coating paper with a film of plastic resin), the product goes out of the ambit of the said expression. In the opinion of Shri Mukherjee carbon paper, ammonia paper, stencil paper, toilet paper, etc., on the same logic do not come within the sweep of the said expression. To drive home his point he seeks to rely on the decision reported in [1977] 39 STC 8 (SC) [State of Uttar Pradesh v. Kores (India) Ltd.] and [1986] 61 STC 76 (SC) (Commissioner of Sales Tax, U.P. v. Macneill Barry Ltd.). In the first case it came for consideration of the Supreme Court if carbon paper could be regarded as "paper" within the Notification No. ST-3124/X-1012(4)-1964 dated July 1, 1966. In the second case, the issue was if ammonia or ferro paper comes within the purview of the expression "paper and other hand-made paper". In both the cases the aforesaid issues were answered in negative by the Supreme Court. 6.. But it is pertinent to mention here that those two decisions were in the context of expression "paper" (and/or "hand-made paper") simpliciter, and not in the context of any statutory provision which seeks to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revisional Board did not apply his mind to the only issue argued before him, that 'plasticoated paper' or 'polycoated paper' or 'stiffener board' coated as above, does not come within the meaning of the identical expression 'paper of all varieties and descriptions' used either in notification under section 25 of the West Bengal Sales Tax Act, 1954, now repealed or under section 4A of the Bengal Finance (Sales Tax) Act, 1941, now repealed." 8.. In view of such admitted nature of articles seized we are of the opinion that coated poster (total of 40 reels) is a specially processed papers and not paper simpliciter and does not come under the expression "paper of all varieties and descriptions". We however hold that it comes within the sweep of item No. (2) of Notification No. 1785-F.T. dated June 1, 1987, because it is nothing but specially processed paper like carbon paper, stencil paper, etc. Hence, for importation of the same from outside West Bengal a permit in form XXXA must be obtained and a failure to comply with this requirement would attract the penal provision of section 14A(2) of the 1941 Act. 9.. However, it is found that out of 48 reels seized from the truck there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant had reasons to believe that the coated papers did not come within the ambit of entry Nos. (1) and (2) of notification under the 1941 Act. He, therefore, contends that the revenue authorities cannot take advantage of their own wrong and penalise the applicant and that the Revenue is estopped from taking a different stand as regards the coated papers/boards. We do not find much substance in this contention. There cannot be any estoppel against the statute. Even assuming that wrong interpretation was given by a C.T.O. in the context of a notification under the 1954 Act, the same cannot set free the applicant from a legal obligation when entry Nos. (1) and (2) were included in Notification No. 1785 F.T. dated June 1, 1987 under the 1941 Act. The applicant ought to have known his position in regard to such coated paper and boards. The plea of ignorance will not be of any help. 11.. The additional argument of Shri Mukherjee in regard to the penalty is that penalty should not be imposed as a matter of course unless a person is to have acted deliberately in defiance of law. To support his contention he refers to a decision reported in [1970] 25 STC 211 (SC) (Hindustan Steel Ltd. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 707 dated February 13, 1985. The C.T.O. in his memo has opined that the product under query is not covered under section 25 of the 1954 Act, "as the product has not come as it is from the manufacturing process" and also because "it is obtained by a subsequent process, namely, 'extrusion coating'". Clearly, he has confined his observation in the context of the entry No. (1) of Notification No. 1914-F.T. dated May 10, 1963, issued under the 1954 Act, because this entry covers "paper" simpliciter which comes in such form from the paper mills without being subjected to subsequent processing. On the contrary, entry No. (1) of the second Notification dated March 26, 1979 covers papers which have undergone subsequent special processing. Had the C.T.O.'s opinion been sought in the context of the entry No. (1) of the second notification there would not have been occasion for him to opine that this entry, which covers specially processed papers, does not encompass polycoated/plasticoated paper which according to the C.T.O. himself is a paper which has already been subjected to special processing, namely, extrusion coating. We have already observed that the coated poster, as seized from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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