SURJA MOHAN CHAKRABORTY Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) The petitioners, who are partners of Messrs. Southern Electric Company (hereinafter referred to as the said petitioners) and deal inter alia amongst others in hardwares, torches, batteries, fittings, cablewares, fans and electrical parts and accessories and bulbs, moved and obtained the rule on 27th November, 1972, against a notice in annexure B, which is dated 22nd August, 1972 and was issued by the Assistant Commissioner, Commercial Taxes, Calcutta, South Circle, respondent No. 4, whereby they were directed to show cause on 13th September, 1972, as to why a security of Rs. 1,00,000 under Section 7(4a)(i) of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as the said Act), should not be demanded from them.

(2.) It has been stated by the said petitioners that the partnership in question at all material times had and still has a great reputation and goodwill in the market, as a result whereof they could obtain distributorship and authorised dealership and recognised wholesalership of firms of repute, amongst others, like the Union Carbide India Ltd., Philips India Ltd., Crompton and Greaves Ltd. and Belrex India Ltd. It is also an undisputed fact that the said petitioners are registered under the said Act and the Central Sales Tax Act, 1956, having registration Nos. BH/3469A and 697A/BH/Central respectively under the Acts as aforesaid. It has been contended by the said petitioners that in terms of the conditions of such registration and in accordance with the requirements of statute, they have duly filed quarterly returns along with requisite treasury or Reserve Bank challans up to June, 1972 and they are neither in default on that account or on account of any arrear taxes. In fact, it has been stated that there is no return or challan outstanding against them up to the said period of June, 1972. The necessary particulars of the assessments have been shown in paragraph 7 of the petition. The accounting year of the petitioners is 4 (four), quarters ending on Akshaya Tritiya of Bengali Calendar and their assessments have been completed up to the 4 quarters ending Akshaya Tritiya 1375 B.S. They have further stated that until the middle of November, 1971, they found no trouble or hindrance in the matter of carrying on their business and in fact they had received all co-operation from the respondents in all matters including the issue and grant of necessary declaration forms for their purchases within and outside the State. It has also been contended by the said petitioners that throughout their dealings they have neither lost any nor misused the declaration forms.

(3.) It has been stated that on 17th November, 1971, there was a surprise and sudden visit of the said petitioners' place of business by the officers of the Bureau of Investigation, Finance Department, Government of West Bengal and there was seizure of almost all the primary books of account and records and the partners were also interrogated for the purpose of an investigation under the said Act and the Rules framed thereunder. The said action, the said petitioners have challenged in Civil Rule No. 4241(W) of 1971, which was pending at the time of the issue of the present rule.