NIVA DAS Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THIS application under Section 8 of the West Bengal Taxation Tribunal Act, 1987 is directed against an order refusing to grant financial assistance under the Industrial Promotion (Assistance to Industrial Units) Scheme, 1994 (hereinafter referred to as "the Scheme"). The applicant is a partner of a firm engaged in manufacturing "phenyle", a disinfectant fluid, and is registered under the West Bengal Sales Tax Act, 1954 (in short "the 1954 Act") and the Central Sales Tax Act, 1956. In terms of his return for the period from April 1, 1994 to March 31, 1996 the applicant paid tax of Rs. 5,58,116 under the said two Acts. The applicant then in accordance with paragraph 4 of the Scheme filed petition in form I for refund of 90 per cent of the sales tax paid on the ground that the firm being a manufacturer of a drug, viz., phenyle, was entitled to assistance under the Scheme. But the Assistant Commissioner of Commercial Taxes (respondent No. 3) rejected the prayer on the ground that the phenyle was not a drug and communicated his finding to the firm by a letter. The applicant claims that the phenyle is a drug within the meaning of entry 3(i) of Schedule A to the Scheme and hence the respondent was wrong in refusing to entertain the prayer. The applicant now prays for directing the respondents to release the refundable tax amounting to Rs. 5,02,305 and for consequential reliefs.

(2.) THE respondents' contention as contained in the affidavit -in -opposition is that under the scheme respondent No. 3 is no authority to sanction or reject assistance and it is only the State Government which is competent to take final decision about sanction of the said industrial promotion assistance. The respondents further assert that the Joint Secretary, Policy Planning Unit (in short "PPU"), Finance Department processes applications under the Scheme and places the same for the Government's decision and that only a copy of the application need be sent in order to enable the Commissioner of Commercial Taxes to issue to the Joint Secretary, PPU a certificate as to the correctness of particulars furnished in the application. According to the respondents the passing of any order by respondent No. 3 disposing of an application in form I was of no consequence, nor has this Tribunal any jurisdiction to entertain the application because the Scheme has not been framed under the West Bengal Sales Tax Act, 1994 or any other tax laws of the State.

(3.) MANNER of application. - -A registered dealer who claims industrial promotion assistance under paragraph 3 shall make an application in form I duly filled in, verified and signed by him to the State Government within 4 months from the end of each quarter in respect of payment of tax made under return or returns which was/ were submitted for such quarter along with a copy of such application to the appropriate Commercial Tax Officer.