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TMI Blog2003 (4) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of this Court has since ceased and exclusively conferred on the learned Tribunal constituted under the 1987 Act. Against this order, this appeal has since been preferred. 2.. Mr. Mihir Lal Bhattacharyya, the learned Senior Counsel for the appellant, submits that this is a sale in course of inter-State trade or commerce (inter-State sale), which is occasioned with the movement of the goods in terms of section 3 of the Central Sales Tax Act, 1956 ("Central Act"). The seizure of the goods was made with the object of enforcement of the provisions of the Central Act and for prevention of evasion of tax collectable under the Central Act. The Central Act in sub-section (2) of section 9 provides that the authorities under the State Act shall have jurisdiction for enforcement and advancement of the object and purpose of the Central Act in exercise of the authority conferred upon them under the State Act unless there is specific and express provision made in the Central Act or the Rules framed thereunder. He also points out from rule 11 of the Central Sales Tax (West Bengal) Rules, 1958 ("Central Rules") that the provision of the State Act and the Rules made thereunder shall apply m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to the powers other than seizure. The provisions of seizure are provided in the State Act in section 68. Therefore, any steps taken by the authority under the State Act in relation to the seizure of the goods not otherwise provided for in the Central Act, is a matter governed by the State Act. The third contention is that the goods having not crossed the border and stored in the warehouse before crossing the border, any steps taken by the authorities under the State Act would be governed by the State Act and not by the Central Act. Therefore, it is the Tribunal, which has jurisdiction. Because of the decision in L. Chandra Kumar v. Union of India [1997] 105 STC 618 (SC); (1997) 3 SCC 261, this Court cannot entertain writ petition unless it is routed through the Tribunal. With these reasons she has supported the decision of the learned single Judge. She has also distinguished the decisions cited by Mr. Bhattacharyya. 5.. The question seems to be very simple. The West Bengal Taxation Tribunal Act, 1987, in section 5 provides that the 1987 Act would be applicable only in respect of the State Acts specified in the Schedule to that Act and that the Tribunal constituted under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enforcement of any tax under any specified State Act and in all matters connected therewith or incidental thereto. Therefore, the thrust was in respect of the matter governed or covered under the specified State Acts. Admittedly, the Central Sales Tax Act cannot be included in the Schedule containing specified State Acts within the meaning of section 2(k) of the 1987 Act. Therefore, if it relates to the Central Act then, the Tribunal cannot assume jurisdiction. 9.. "Sale" is defined in section 2(g) of the Central Act to mean sale with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration, and includes a transfer of goods on hire purchase or other system of payment by instalments, but does not include a mortgage or hypothecation of or a charge or pledge on goods. 10.. The manner how the sale takes place, has since been provided for in section 3 of the Central Act which is as follows: "3. When is a sale or purchase of goods said to take place in the course of inter-State trade and commerce.-A sale or purchase of goods shall be deemed to take p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are differences in laws operating in the field in different States. In order to make the Central law flexible, the Parliament, in its wisdom, had thought it fit to express its intention to adopt the State Act for the purpose of carrying out the purpose and object of the Central Act in the State concerned. Instead of maintaining double establishments, it had expressed its intention to avail of the machinery and mechanism created by the State Act for the purpose of implementation and enforcement of the Central Act. 13.. Section 9 of the Central Act provides for levy and collection of tax and penalties in the following manner: "9. Levy and collection of tax and penalties.-(1) The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within clause (a) or clause (b) of section 3, shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the State from which the movement of the goods commenced: Provided that, in the case of a sale of goods during their movement from one State to another, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess, reassess, collect and enforce payment of tax includes all kinds of activities within the Act concerned. The seizure of the goods is in aid of enforcement of the Act concerned for collection of taxes. It also empowers collection of penalty. For the purpose of carrying out the purpose of the Central Act, the Legislature had adopted the machinery and the mechanism provided under the State Act through express provision provided in section 9 of the Central Act. This seems to have been done for exercising effective control over the situation through common agency. The 1958 (Central) Rules, in rule 11, provides that the provisions of the State Act and the Rules made thereunder shall mutatis mutandis apply to all proceedings or other matters incidental to the carrying out of the matters of the Central Act for which no provision is made in the 1958 (Central) Rules or in the Central Sales Tax (Registration and Turnover) Rules, 1957. In the one hand, the Central Act has adopted the State Act through legislation by adoption for carrying out the purpose of the Central Act and then in rule 11 of the Central Rule, on the other, it provides for the procedure for carrying out the purpose of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision is provided for in the Central Act or the Central Rules specifically, by reason of adoption by legislation, the authorities under the State Act would be acting for carrying out the purpose of the Central Act. Arrest of evasion of taxes is a step in aid of collection of tax. In other words, it is an enforcement of the Act within the meaning of section 9, sub-section (2) of the Central Act. When the authorities under the State Act exercise their authority under the State Act in respect of an inter-State sale, it deals with the collection of tax under the Central Act and enforcement of the provisions thereof. When it exercises power under sections 68, 70 and 71, it ensures prevention of evasion of taxes payable on inter-State sale governed under the Central Act. Therefore, any authority exercised by the authorities created under the State Act in exercise of power conferred upon them by the State Act, in respect of matters not provided for either in the Central Act or in the Central Rules, in relation to any inter-State sale governed by the Central Act and the Central Rules, it acts in aid of enforcement of the Central Act. There cannot be any other interpretation. 18.. In Sita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hieving such object. Search and seizure has no relevance or existence without the Act. The levy of penalty is also aimed at preventing evasion, equally connected with the enforcement of tax. Thus, these are integral part of levy, assessment, collection and enforcement of tax. When such function is undertaken by the authorities under the State Act for the purpose of enforcement of the Central Act, such function is a discharge of function under the Central Act by legal fiction. As such it cannot be brought within the purview of any specified State Act subject to the 1987 Act. In State of A.P. v. National Thermal Power Corpn. Ltd. [2002] 127 STC 280 (SC), the apex Court had laid down that in 20th Century Finance Corpn. Ltd. v. State of Maharashtra [2000] 119 STC 182 (SC); (2000) 6 SCC 12, it was made clear by the majority of the Constitution Bench that the situs of the sale or purchase is wholly immaterial as regards the interState trade or commerce. In view of section 3 of the Central Sales Tax Act, 1956, all that has to be seen is whether the sale or purchase (a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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