NARSI & ASSOCIATES Vs. DEPUTY COMMISSIONER, COMMERCIAL TAXES

JUDGEMENT

(1.) The petitioner/appellant in both the matters is a proprietorship concern registered as a dealer under the provisions of the West Bengal Value Added Tax Act, 1956 (WBVAT) and Central Sales Tax Act, 1956 (CST). In this judgment and order the petitioner/appellant shall be referred to as the assessee and the respondent as the revenue.

(2.) In WPTT No 02 of 2018, the assessee has challenged the order passed by the West Bengal Taxation Tribunal in Case No. R.N 1540 of 2017 dtd. 22/12/2017. In MAT No 1911 of 2017, the assessee has challenged the correctness of the order in WP No. 23339 (W) of 2017 dtd. 11/9/2017 by which the writ petition filed by the assessee challenging the notice of assessment under Sec. 46 of WBVAT was dismissed.

(3.) The facts giving rise to both the matters are as hereunder. The revenue issued a notice under Sec. 46 read with Sec. 66 of WBVAT dtd. 16/8/2017. By the said notice the revenue was of the opinion that an assessment is required to be made under Sec. 46 of WBVAT as the assessee has carried forward excess ITC over Rs.5,00,000.00 to the next financial year. The said notice was challenged before the tribunal in Case No. R.N 1540 of 2017 on the ground that it is without jurisdiction as none of the grounds mentioned in the said provision are attracted for initiating assessment proceedings under Sec. 46. It appears that the tribunal disposed of the application at the admission stage by observing that, on going through the provisions of Sec. 46, it is found that none of the grounds for initiating assessment proceedings under the said provision were made out. The revenue contended that certain provisions of Sec. 47 would apply. The tribunal without assigning any reasons stated that they are not satisfied with the explanation given by the revenue and accordingly quashed the notice dtd. 16/8/2017 with liberty to the revenue to act strictly as per the provision of the law. The revenue filed Review Case No. RW 02 of 2017 to review the order passed by the tribunal dtd. 13/9/2017 in R.N No. 1540 of 2017. It was contended that identical notice dtd. 16/8/2017 was issued to the assessee under Sec. 9 of the CST Act read with Sec. 46 of the WBVAT on the same ground that excess ITC over Rs.5,00,000.00 has been carried forward by the assessee to the next financial year. The said notice was challenged by the assessee in WP No. 23339(W) of 2017 on the same grounds which were canvassed before the tribunal challenging the notice dtd. 16/8/2017 under Sec. 46 of the WBVAT.