COMMERCIAL TAX OFFICER Vs. BENGAL POTTERIES LTD

JUDGEMENT

(1.) The Bengal Potteries Ltd., the respondent herein, at the material time was a registered dealer both under the Bengal Finance (Sales Tax) Act, 1941./ and the Central Sales Tax Act, 1956. In exercise of his powers under Rule 27AA of the Bengal Sales Tax Rules the Commercial Tax Officer, Radha Bazar Charge, by two separate orders both dated 8th May, 1975, had refused to issue to respondent No. 1, form No. C declaration forms and form No. XXIVA declaration forms on the ground that the dealer had defaulted in submitting returns under the aforesaid two Acts since July, 1973. The principal point in this appeal is whether or not the said withholding of declaration forms to the respondent-company under Rule 27AA(2)(c) of the Bengal Sales Tax Rules was legal and valid.

(2.) His Lordship the Honourable Sabyasachi Mukharji, J. (as his Lordship then was), by his judgment/order dated 29th September, 1975, made absolute in part the rule obtained by the Bengal Potteries Ltd. against the aforesaid two orders withholding declaration forms. The learned Judge has held that the Commercial Tax Officer had no jurisdiction to impose any restriction or condition for obtaining declaration forms in terms of Section 8(4) of the Central Sales Tax Act, 1956. The trial Judge pronounced as invalid Rule 4(2) of the Central Sales Tax (West Bengal) Rules, 1958, which makes Rule 27AA of the Bengal Sales Tax Rules applicable in case of issue of declaration forms referred to in Section 8(4) of the Central Sales Tax Act, 1956, read with the Central Sales Tax (Registration and Turnover) Rules, 1957. The learned Judge directed the Commercial Tax Officer to reconsider the writ petitioner's application for granting declaration forms under the Central Sales Tax Act, 1956, in accordance with law. The learned trial Judge, however, rejected the petitioner's further contention that Rule 27AA of the Bengal Sales Tax Rules, 1941, was also ultra vires Section 5(2) of the Bengal Finance (Sales Tax) Act, 1941, and the Commercial Tax Officer had no jurisdiction to withhold issue of declaration forms even under the said Act.

(3.) The Commercial Tax Officer, Radha Bazar Charge, and two others preferred this appeal under Clause 15 of the Letters Patent against the judgment of the learned trial Judge holding that Rule 4(2) of the Central Sales Tax (West Bengal) Rules, 1958, was ultra vires and that the Commercial Tax Officer had no jurisdiction to impose any condition for issue of declaration forms under Section 8(4) of the Central Sales Tax Act.