SWARMAL CHOUDHURY Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This writ application is directed against the refusal of the Commercial Tax Officer in issuing declaration forms to the petitioner, a registered dealer. The petitioner carries on business in grading and processing of tea. The factory was installed only in the year 1979 at Jalpaiguri with plant and machinery. The production in the said factory started on and from October, 1979 and the first sale within the State of West Bengal out of the production of the said factory took place on 22nd October, 1979. On 22nd December, 1979 the petitioner was granted registration certificate under the Bengal Finance (Sales Tax) Act, 1941. The petitioner applied for eligibility certificate under Rule 3(66) of the (West) Bengal Sales Tax Rules which grants tax holiday to newly set-up industrial unit on fulfilment of certain conditions laid down in the said Rules. According to the petitioner, the petitioner satisfied all the conditions under Rule 3(66) and applied for exemption under the said Rules. The Assistant Commissioner, Commercial Taxes, Jalpaiguri, the respondent No. 2, after examining all the relevant records and documents and after being fully satisfied that the petitioner was engaged in the business of manufacturing goods, allowed the petitioner to avail exemption under Rule 3(66) for the period from 1st April, 1980 to 31st March, 1981. Such exemption was also granted by renewing "eligibility certificate" for a further period of 1 year from 1st April, 1981 to 31st March, 1982. It may be mentioned that "eligibility certificate" was initially granted on 11th May, 1981 for the period from 1st April, 1980 to 31st March, 1981 and it was renewed thereafter on 1st December, 1983 for the subsequent period, that is to say, from 1st April, 1981 to 31st March, 1982. On 12th December, 1983 the petitioner made an application for renewal of the "eligibility certificate" for the period from 1st April, 1982 to 31st March, 1983. On 15th February, 1985 a notice was issued from the office of the Assistant Commissioner, Commercial Taxes, communicating the rejection of the application for renewal of "eligibility certificate" for the period from 1st April, 1982 to 31st March, 1983. Thereafter the petitioner filed revisional petition against the order of the Assistant Commissioner, Commercial Taxes, rejecting the application for renewal of the eligibility certificate.

(2.) On 2nd May, 1985, the petitioner made an application for declaration forms. The Commercial Tax Officer withheld the issues of declaration forms on the ground that the revision petition against the rejection of "eligibility certificate" was pending before the Additional Commissioner of Commercial Taxes. In the month of October, 1985, the petitioner once again applied for declaration forms. This time however rejection was made on the ground that the petitioner has not paid taxes after rejection of the renewal application of the eligibility certificate on 11th March, 1986; notice of assessment under the Bengal Finance (Sales Tax) Act, 1941 and the Central Sales Tax Act, 1956 was issued to the petitioner for the 12 months ending 30th September, 1983 and 30th September, 1984.

(3.) The case of the petitioner is that the petitioner was being reminded by its sellers for issue of declaration forms. The petitioner moved this Court and an order was passed by S. C. Sen, J., directing the petitioner to pay Rs. 32,500, and further directed the sales tax authority to issue declaration forms on the commensurate value of Rs. 32,500. In compliance with the said order the sales tax authority issued declaration forms against the purchase of Rs. 15,00,000 although on the basis of the commensurate value the declaration forms should be issued on Rs. 32,50,000.