9911796707
TMI Blog2009 (5) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... has been importing such goods from outside West Bengal. Under the West Bengal Sales Tax Act, 1994 (hereinafter referred to as, the 1994 Act ) PVC pipes and its fittings were covered by serial No. 123 of Schedule IV and taxable at four per cent. The petitioners were duly paying tax at four per cent on PVC pipes and their fittings. The West Bengal Value Added Tax Act, 2003 (hereinafter referred to as, the VAT Act ) replaced 1994 Act and came into operation on and from April 1, 2005. PVC pipes were included in serial No. 54 of Schedule C of the VAT Act. However, the fittings of the pipes were not originally included in the said serial No. 54. Serial No. 54 was amended by West Bengal Act XIII of 2005 with effect from May 1, 2005. By the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by such rejection by the Settlement Commission the petitioners have moved these two applications before this Tribunal. There is no dispute that under the 1994 Act tax at four per cent was payable on sales of fittings of PVC pipes and during the period of one month, i.e., April 1 to April 30, 2005 under the VAT Act tax was payable at 12.5 per cent on sales of fittings of PVC pipes. In the assessment orders for the year 2005-06 the assessing authorities correctly charged tax at 12.5 per cent on sales of PVC pipes during the aforesaid period of one month. Mr. Chakraborty, learned Advocate for the petitioners, has submitted that levy of tax at 12.5 per cent on the fittings of PVC pipes under the VAT Act being inconsistent with the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or penalty, if any, on an assessment which is inconsistent with an assessment made earlier under the Act due to application of different rate of tax in respect of any goods or non-admissibility of a claim of such dealer in respect of this assessment, in spite of the fact that no amendment in the provisions of, or no addition, alteration or modification in the Schedule to, the Act has been made during the period of such earlier assessment and this assessment or in spite of the fact that a particular practice or procedure has been followed by the dealer in respect of such earlier assessment; (c) and (d) . . . In view of the clear language of Explanation (b) as quoted hereinabove, we are unable to accept the submission made by Mr. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation (b) is that kind of inconsistency which arises out of different interpretations of the same entry by the assessing authorities. Mechanism of Settlement Commission has been introduced to settle disputes relating to applicable rate of tax. If there is no dispute regarding applicability of rate of tax other kinds of disputes do not come under the purview of the Settlement Commission set up under section 8A of the VAT Act. Mr. Chakraborty has further submitted that there is no reason why the amendment of entry 54 of Schedule C to the VAT Act was not effected from April 1, 2005 and why for just one month the higher rate of tax was kept chargeable on the fittings of PVC pipes. Legislature has the freedom of fixing the rate of tax and r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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