COMMISSIONER OF SALES TAX Vs. ECONOMIC TRADERS

JUDGEMENT

(1.) The reference under section 61(1) of the Bombay Sales Tax Act, 1959, made at the instance of the Commissioner of Sales Tax appears to us, in the light of subsequent facts, to be unnecessary to decide and in light of the facts as existing at the date of the original Application for Rectification from which this Reference arises, as one which could easily have been avoided.

(2.) The brief facts which are necessary for an understanding of this Reference are that the Respondents are a firm registered as a dealer under the Bombay Sales Tax Act, 1959. For the assessment period, April 1, 1960 to March 31, 1961, the Respondents were assessed to tax under the said Act. By his assessment order the Sales Tax Officer levied a penalty of Rs. 1,200 upon the Respondents under section 37(1) of the said Act. Against this order the Respondents went in appeal, and the Assistant Commissioner of Sales Tax in appeal deleted the penalty imposed upon the Respondents. Thereafter on October 20, 1966 the Deputy Commissioner of Sales Tax issued a notice calling upon the respondents to show cause why the said order of the Assistant Commissioner should not be revised by him. After hearing the Respondents, by his order dated November 7, 1966 the Deputy Commissioner held that if the Assistant Commissioner thought it fit to set aside the penalty, he should have forefeited to the State Government the sums collected by the Respondents in contravention of the provisions of the Bombay Sales Tax Act, 1959, and that he not having done so, his order was liable to be revised and he accordingly revised the said order and directed the said sum of Rs. 1,200 to be forfeited to the Government.

(3.) Thereafter on January 21, 1967 the Tribunal in Revision Application No. 682 of 1965 Motor Machinery Manufacturers Ltd. vs. The State of Maharashtra heard along with Appeal No. 6 of 1967 in which the said Motor Machinery Manufacturers Ltd. were also the appellants, held that the Deputy Commissioner of Sales Tax had no jurisdiction or power to revise an appellate order passed by the Assistant Commissioner of Sales Tax. Relying upon his judgment the Respondents filed on October 3, 1967 an Application for Rectification before the Deputy Commissioner under section 62 of said Act requesting him to rectify his said order in view of the said judgment of the Tribunal. By his order dated November, 1967 the Deputy Commissioner dismissed the said Application for Rectification. He held that the decisions of the Tribunal, unlike those of the Supreme Court and the High Court, were not binding upon the Sales Tax authorities. He further observed that the Department had not accepted the decision of the Tribunal in the case of Motor Machinery Manufacturers Ltd. vs. The State of Maharashtra and that at the instance of the Commissioner of Sales Tax a Reference had been made to the High Court and was pending.