LexCALCUTTA IRON MERCHANTS versus COMMISSIONER OF COMMERCIAL TAXES AND ANR.
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A B c CALCUTTA IRON MERCHANTS v. COMMISSIONER OF COMMERCIAL TAXES AND ANR. FEBRUARY 23, 1996 [B.P. JEEVAN REDDY AND K.S. PARIPOORNAN, JJ.) Sales tax: Be;;gal Finance (Sales tax) Act, 1941/Rules. S.4B/Rule 89A-Dealers purchasing and transp01ting iron and steel-- Obligation on the purchasers/transporters to be in possession of documents relating to the goods, to be produced whenever demanded by the appropriate officer-No such obligation on seller/consignor to issue the declaration which is one of the said document-Tribunal's direction that if the declaration could D not be produced the purchasers/transporters be allowed' to establish that despite his demanding, the seller did not issue the same-ff satisfied with this the approp1iate auth01ity should not seize the goods or impose penalty-Held in view of the meaning and purp01t of Rule 89(2) the directions becon1es unnecessary and hence deleted. E F CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3858 of 1996. From the Judgment and Order dated 17.6.94 of the West Bengal Taxation Tribunal, Calcutta, in Case No. R.N. 296 (T)/92. A Subba Rao, for the Appellants. Santosh Hedge, D.K. Sinha, J.R. Das, for Sinha & Das for the Respondents. G The following Order of the Court was delivered : Leave granted. Heard counsel for the parties. H Section 4B of the Bengal Finance (Sales Tax) Act, 1941 says : 1030 L -- CALCUTTA IRON MERCHANTSv. COMMR OF COMMERCIAL TAXES 1031 "No person shall transport from any railway station, steamer sta- A tion, airport, post office, or any other place whether of similar nature or otherwise, notified in this behalf by the State Govern- ment, any consignment of any notified goods exceeding such quan- tities and except in accordance with such conditions as may be prescribed. Such conditions shall be made with a view to ensuring B that there is no evasion of tax by this Act." Sub-section (2) empowers the State Government to prescribe the condi- tions for regulating transport of notified goods from any place, other than those referred to in sub-section (1) with a view to ensuring that there is no evasion of tax imposed by this Act. C Pursuant to the above provisions, rules have been made by the State Government. Rule 89A and in particular sub-rule (2) thereof is relevant for our purpose. It reads: "(2) Where such consignment is despatched from any place within D West Bengal and the value whereof exceeds rupees twenty five thousand -- (a) any person transporting such consignment shall carry with him a consignment note or delivery note, sale bill or cash memo or similar document and a written declaration in dupli- E cate duly signed by the consignor or his authorised agent in the form mentioned in the Schedule appended to this sub- rule in respect of such consignment, and shall, on demand by the officer referred to in the proviso to sub-rule (1) of Rule 70A, produce the said documents and declaration and the F said officer, on being satisfied about the correctness of the documents and the declaration, shall only allow the move- ment of such quantity of notified goods mentioned in that declaration and conforming to the description given therein and to other documents produced. He shall retain one copy G of the declaration and return the second copy on which he shall endorse the date on which the consignment is transported and shall sign, seal and date such endorsement; (b) If the declaration referred to in clause (a) in respect of any consignment has already been submitted to an officer H 1032 A B c D E F G SUPREME COURT REPORTS [1996] 2 S.C.R. referred to in the proviso sub-rule (1) of rule 70A any person transporting such consignment shall, on demand by such officer at any subsequent place, produce the countersigned and sealed copy of the aforesaid declaration. SCHEDULE Declaration Declaration No ................. . Date ................................... . I/We declare that the following consignment of notified goods is despatched from a place within West Bengal : 1. Name and address of the consignor 2. (a) Name and address of the consignee. (b) Registration Certificate/Certificate No. of the consig- nee (if registered or certified under any of the Sales Tax Acts). 3. Place of despatch. 4. Destination. 5. Description of consignment 6. Quantity 7. Weight 8. Value 9. Consignor's Bill/Cash Memo/other document (specify) No. and date. 10. Consignment ot Delivery Not
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