DULAL CHANDRA BHAR Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This appeal is against the judgment and order dated 3rd May, 1965, passed by Banerjee, J., whereby the connected rule nisi obtained by the petitioner-appellants was discharged.

(2.) The petitioners were served by respondent No. 1, the Commercial Tax Officer, Shyambazar Charge, with three notices under Section 9(3) of the West Bengal Sales Tax Act, 1954 (West Bengal Act 4 of 1954), hereinafter referred to as the 1954 Act, stating that the appellants, though liable to pay tax under the said Act, failed to get themselves registered and it was thought necessary to make an assessment under Section 9(3) to the best of judgment. The appellants were given an opportunity of being heard on 26th July, 1961, for periods 1362 B. S., 1363 B.S. and 1364 B.S. After hearing, the appellants were assessed to tax under the 1954 Act by the said respondent by three separate orders on 26th February, 1962, at Rs. 5,515.02, Rs. 12,487.11 and Rs. 10,861.35 for the said years respectively totalling Rs. 28,863.48 and the appellants were directed to pay the amount by 9th April, 1962. The tax was for their sales of cane sugar-candy and palm sugar-candy, which are the commodities manufactured and sold by the appellants.

(3.) The appellants moved applications under Section 12(2) of the 1954 Act for review of the orders of assessment, but the applications were summarily rejected as, it was said, they were not in conformity with Rules 38 and 44(1) of the West Bengal Sales Tax Rules, 1954. The appellants were thereafter served with three certificates for the said total amount of Rs. 28,863.48 in respect of the aforesaid periods. The appellants thereupon, on service of a notice of demand, moved this Court by an application under Article 226(1) of the Constitution and rule nisi was issued on 5th September, 1962, calling upon the respondents, the Commercial Tax Officer, Shyam Bazar Charge, as also the Certificate Officer, 24-Parganas, to show cause why appropriate writs should not issue' quashing the certificates and also directing the respondents to cancel or forbear from giving effect to the same. The appellants contended, inter alia, that the assessment at the rate of 3 per cent in excess of 2 per cent was in violation of Section 15 of the Central Sales Tax Act, 1956, and sugar being one of the declared goods was not liable to tax at least from 14th December, 1957 ; the applications for review, it was contended, were rejected without giving any opportunity to the appellants to rectify the defects, if any. It was further stated that the appellants duly filed returns showing sales of cane sugar-candy and palm sugar-candy as non-taxable commodities and the sales of the said commodities were not liable to tax in law.