9911796707
TMI Blog1998 (11) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... e name of creative . It was converted to Creative Pvt. Ltd. on December 10, 1991. It was again converted to a public limited company in the present name, Creative Ltd., with effect from July 1, 1996. It was registered as a dealer under the 1941 Act with effect from March 17, 1989. Under the West Bengal Sales Tax Act, 1994 it has been deemed to be registered. The company is an exporter of leather goods. Its domestic sale is limited to sales of scrap leather and rejected materials. Domestic sales are insignificant compared to export sales. For the period of four quarters ending March 31, 1990 the company s assessment was deemed to have been made on June 30, 1993 under section 11E(1) of the 1941 Act. This relates to RN-95 of 1997. So far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 3, namely, Commercial Tax Officer, Balligunj Charge and Deputy Commissioner, Commercial Taxes, Calcutta South Circle, respectively started demanding tax in respect of the aforesaid periods and created difficulties in issuance of permits to the applicant for not paying the demanded tax. Respondent No. 3 also allegedly started reopening assessment cases for the years 1989-90, 1990-91 and 1991-92. Respondent No. 3 issued notices in form IX in respect of the aforesaid three years for imposing tax on sales of replenishment licences, although the assessments for those periods were deemed to have been made on June 30, 1993 under section 11E(1) of the 1941 Act and the reopening proceedings were dropped by respondent No. 2 by order dated May 6, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opping of the proceedings for reopening the deemed assessments by order dated May 6, 1994 passed by respondent No. 2 under section 11E(2) of the 1941 Act was erroneous, and hence the cases warranted suo motu revision of the said order under section 20(3)(a) of the 1941 Act. The notices issued in form IX for revision of the order dated May 6, 1994 under section 20(3)(a) of the 1941 Act are claimed to be valid and competent. It is contended that section 20(3)(a) permits suo motu revision of any order, and hence order passed under section 11E(2) can also be revised under section 20(3)(a). All the prayers of the applicants are opposed. 4.. Affidavits-in-reply were filed by the applicants contending that section 20(3)(a) of the 1941 Act could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) is applicable to the order dated May 6, 1994 passed by respondent No. 2 and he submitted that the decision of the Supreme Court to the effect that REP licences or exim scrips are goods and, sales thereof are liable to sales tax, is applicable retrospectively, because it is a declaration of the law by the Supreme Court of India, while the law was already in existence. 6.. At the end of section 20 of the 1941 Act there was the following Explanation as amended with effect from April 1, 1988: Explanation.-In this section assessment includes assessment of tax, surcharge and additional surcharge, imposition of penalty or determination of interest, under section 11. We may recall that the deemed assessments involved in the present a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the 1941 Act. It should be noted at this stage that it is undisputed that the notices in form IX dated February 4, 1997 were issued in terms of section 20(3)(a). 7.. It was next argued on behalf of the applicants that respondent No. 3 had made up his mind that the order dated May 6, 1994 shall be revised, because he stated that the sales of REP licences were to be taxed. We are unable to agree with this view, because the notices in form IX are mere notices giving an opportunity to the applicant-company to prefer its objection, if any. What was stated in the lower part of the notices is the Gist of the order proposed to be passed , as clearly printed in the notices. Therefore, though there might be a scope for stating the gist of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint, he is competent to decide questions of fact as well as of law. Moreover, the applicants could not take it for granted that respondent No. 3 himself would reopen the deemed assessments under section 11E(2). In the facts and circumstances of the present cases, we think, it is not required for us to enter into other questions raised by the applicants. 10.. In the result, we hold that the impugned notices in form IX issued under section 20(3)(a) of the 1941 Act by respondent No. 3 on February 4, 1997 are valid and within his jurisdiction. The applicants should comply with the notices and prefer objections or representations, if any, before respondent No. 3 covering all the points (except constitutional ones, if any), they want to raise. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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