PATANKAR BRORS Vs. COMMISSIONER OF SALES TAX MUMBAI

JUDGEMENT

(1.) BOTH these references under Section 61(1) of the Bombay Sales Tax Act, 1959 ('the BST Act', for short) are at the instance of the applicants/assessee based on the following statement of facts. Statement of facts :

(2.) THE applicants have its place of business at Jalgaon. They deal in agricultural machinery and PVC pipes manufactured and sold by M/s. Finolex Pipes Pvt. Ltd., Pune. The applicants had purchased PVC pipes from M/s. Finolex Pipes Pvt. Ltd., who had recovered sales tax from the applicants at 8 per cent. In the assessments, M/s. Finolex was assessed at 8 per cent by the Assistant Commissioner of Sales Tax (Assessment) -I, Pune Division, Pune. However, in the appeals filed by them against the said assessment orders, the Deputy Commissioner of Sales Tax (Appeals) -I, B.C.D., Bombay, who decided the appeals, for the period from May 1, 1982 to April 30, 1984 and from May 1, 1983 to April 30, 1984 found that the pipes manufactured and sold by them, i.e., Finolex Pipes Pvt. Ltd., were taxable only at the rate of 2 per cent being goods covered by entry C -I -18 read with entry No. 117 of the notification issued under Section 41 of the BST Act as such excess amount of tax at 6 per cent collected was liable to be forfeited. Accordingly, excess collection of sales tax made by M/s. Finolex Pipes Ltd. at 6 per cent was forfeited.

(3.) THE fate of the above applications was never communicated to them by the department. The applicant finding no response from the Assistant Commissioner approached the Additional Commissioner of Sales Tax, Pune Division, Pune, who vide letter dated January 20, 1993 informed the applicants that their applications for refund of the forfeited amount had been rejected by the Assistant Commissioner as barred by limitation. The applicants treating the said communication as an order of rejection, filed appeals before the Maharashtra Sales Tax Tribunal, Mumbai ('the Tribunal', for short).