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Calcutta High Court (Appellete Side)

Apeejay Shipping Ltd vs The Joint Commissioner Of Commercial ... on 23 November, 2017

Author: Subrata Talukdar

Bench: Subrata Talukdar

                                                   1




3    23.11.
BR                               W.P. 24567(W) of 2017
      2017
                                 Apeejay Shipping Ltd.
                                          Versus
                 The Joint Commissioner of Commercial Taxes & Ors.
              Mr. Abhijit Chatterjee,Sr. Advocate,
              Mr. Somak Basu                     ... for the petitioner

              Mr.Abhratosh Majumdar, Ld. AAG,
              Mr. Soumitra Mukherjee,
              Mr. Debasish Ghosh                         ... for the State

                        Party/Parties are represented in the order of their

              name/names as printed above in the cause title.

                         Mr. Chatterjee, learned senior counsel for the

               petitioner makes three fold submissions, which may be

               summarised as follows :-



                         a) That the final assessment order issued by one

                         Mr. Asim Kumar Mitra, Commercial Tax Officer,

                         Park Street Charge (for short CTO) dated 17th

                         February, 2017 is in violation of the sound legal

                         principle laid down in AIR 1959 SC page 308 ( at

                         pages 30 and 31 of the writ petition) on the

                         ground that the CTO (supra) is not the Sales

                         Tax    Officer   who    heard     the   parties.   Mr.
                            2


  Chatterjee submits that notice of hearing was

  issued and the parties heard by one Mr. S.

  Bhattacharyya, Sales Tax Officer, Park Street

  Charge;

  b) That the order of assessment is bad in law

  being in violation of Rule 57(3) of the West

  Bengal Value Added Tax Rules, 2005 (for short

  the 2005 Rules ). Mr. Chatterjee points out that

  the proviso to Rule 57(3) specifies that the

  dealer/assessee/writ petitioner be given a gist of

  the proposed order containing adverse findings

  leading upto the demand with an opportunity,

  within the statutory         time limit provided, to

  rebut     such adverse findings. Since Rule 57(3)

  (supra)    is   not   complied   with   ,   the   final

  assessment order is voidable ;

  c) That in view of the foundational infirmities in

  the final assessment order, the requirement of

  depositing 15 per cent of the tax levied under

  Section 84 of the West Bengal Value Added Tax

  Act, 2003 (for short the       2003 Act) cannot be

  insisted upon qua the petitioner /assessee.

By way of reply to the above noted three Issues Mr.
                                  3


 Majumdar , learned senior counsel takes this Court to

 an earlier adjudication    dated 16th November,2016 in

 W.P. No. 953     of 2016 of a Hon'ble Single Bench. The

 Bench, inter alia, set aside the draft assessment order

 dated 28th June, 2016 qua the petitioner on the ground

 that the said draft assessment order             is cryptic.

 Therefore, the Bench remanded the matter to the Sales

 Tax Officer to "reconsider" the petitioner's objection and

 pass a reasoned order.

           Therefore on    Issue (b) above Mr. Majumdar

points out that the requirement of Rule 57(3) (supra) has

been already complied with by the respondents as would

be apparent from the steps taken by the parties to the draft assessment order dated 28th June, 2016. It is pointed out, with merit, that against the draft assessment order the petitioner filed his written objection which appears at page 88 of the writ petition .

Mr. Majumdar argues that the clock cannot now be set back to the point of initiating a de novo proceedings in the face of the clear direction of the Hon'ble Single Bench for reconsideration by the Sales Tax Officer of the "objection" of the petitioner to the draft 4 assessment order dated 28th June, 2016(supra). Accordingly, while resisting the prayer of the petitioner to seek de novo proceedings by applying the Doctrine of Merger at the stage of the present challenge argued by Mr. Chatterjee, Mr. Majumdar, in his usual fairness, submits that the matter may be remanded to the appropriate Sales Tax Officer to complete the proceedings from the stage of reconsideration of the objection of the petitioner to the draft assessment order.

In the backdrop of the above discussion, this Court find no reason not to remand the matter to the appropriate Sales Tax Officer for reconsideration of the assessment on merits from the stage of the petitioner's objection to the draft assessment order as elucidated above.

Issue no. (a) stands answered in favour of the petitioner.

Issue (b) in favour of the Revenue/respondents, Issue ( c ) does not require to be answered at this stage in view of the directions qua Issues ( a ) and

(b) above.

W.P. No. 24567(W) of 2017 stands disposed of 5 at this stage without inviting any affidavits and, also without admitting the allegations.

Urgent Photostat certified copy of this order, if applied for, be given to the learned advocate for the parties on usual undertakings.

( Subrata Talukdar, J. )