9911796707
TMI Blog2003 (1) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... eet, where it was a registered dealer under Park Street Charge. At that time petitioner had business of only resale of coal gas but its manufacturing activity started with effect from February 2, 1996 as per the subsequent amended registration certificate. Never the petitioner was transferee of any other manufacturing unit or most specifically of Oriental Gas Company Ltd. (O.G.C. Ltd.)-also a Government Company which was registered dealer in the said address 12A, Park Street. That Gas Co. (O.G.C. Ltd.) did not carry on any business after 1978 but its registration was cancelled by the Commercial Tax Officer (CTO), Park Street Charge (respondent No. 3) only with effect from April 1, 1996 which fact was intimated to the said O.G.C. Ltd. by letter of respondent No. 2 dated October 11, 1999. Both the companies, i.e., O.G.C. Ltd., and the petitioner-corporation were under the Commerce and Industries Department, Government of West Bengal and had been in existence at the same time. The petitioner-corporation as such can in no way be made liable for payment of any assessed dues of the O.G.C. Ltd. A winding up cell of the said O.G.C. Ltd., is still in existence. Even then the respondent No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability to pay the balance amount. The submission subsequently made praying for dropping the certificate proceeding and the ground stated there are only the result of afterthought for getting a basis for filing of the instant application which as such should be rejected. 3.. The petitioner used affidavit-in-reply. It is stated that with effect from October 7, 1960, State Government took over management and control of the O.G.C. Ltd., and so all assets and liabilities of the said company vested in the State of West Bengal and as such certificate dues if any are recoverable from the State Government and not from the said company. It is also stated that by notification dated March 12, 1990 this petitioner-corporation took over the assets only of the O.G.C. Ltd., and the value of the assets were taken as share capital of the Government in the Corporation. Thus Commerce and Industries Department of State of West Bengal acquired the business of the undertaking of O.G.C Ltd. So sales tax of that company for the period in question should be recoverable from the State of West Bengal holding the Commerce and Industries Department as transferee for taking by the Department all the assets a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uashed. 7.. Admittedly both the companies had been in existence at the same period of time and accordingly the petitioner-company cannot be categorised as transferee of the O.G.C. Ltd., within the meaning of section 17 of the Bengal Finance (Sales Tax) Act, 1941. Admittedly this petitioner-company (G.C.G.S. Corpn. Ltd.) has not been served with any demand notice or any copy of the relevant assessment order. It appears from the Oriental Gas Company Act, 1960 which Act was enacted by the State Legislature, that the management and control of the O.G.C. Ltd., was taken over by State Government under the provisions of the Act of 1960 with effect from October 7, 1960 for a period of five years. Section 3 of the Act refers to such taking over of control of the undertaking of that Company by the State Government. Section 4(a) specifically provides that the undertaking of the Company, namely, O.G.C. Ltd., shall stand transferred to the State Government for the purpose of management and control. Clause (a) of section 4 provides that any proceeding pending, any cause of action existing before the appointed day (7th October, 1960) in relation to the undertaking of the Company may be continue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by stating that proposal for budgetary provision of Rs. 25 lakhs has been made to the Commerce and Industries Department of the Government of West Bengal and that Government order to that effect is expected soon and the payment shall be made thereafter and that as such the bank account freezed should be released. But we are unable to agree with the submission as made by the learned State Representative in this respect. We cannot ignore the fact that the State Government in the Commerce and Industries Department has taken over both the assets and liabilities as well as acquired control and management in full of the O.G.C. Ltd. But no clause of the notification dated March 9, 1990 shows that the petitioner-company, namely G.C.G.S. Corporation Ltd., has been saddled with the liability to pay the dues pending against the O.G.C. Ltd. Simply because a promise has been made by the petitioner Company's Managing Director by letter dated September 15, 1999 accepting the liability, it cannot be proved that the liability has been fastened lawfully. The assurance given in the letter obviously is the result of the coercive method adopted by respondent No. 1 by attaching the bank account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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