1992 (2) TMI 347 - AT - VAT and Sales Tax

Summary

Issues:
Interpretation of the term "year" in section 6B(3)(a) of the Bengal Finance (Sales Tax) Act, 1941.
Applicability of the proviso to section 6B(3) for marginal relief in turnover tax assessment.

Interpretation of the term "year" in section 6B(3)(a):
The case involved a dispute regarding the interpretation of the term "year" in section 6B(3)(a) of the Bengal Finance (Sales Tax) Act, 1941. The applicants argued that the turnover tax rate should be based on the turnover for the period the tax was levied, not the entire accounting year. They contended that the turnover from January to March 1979 should be excluded from the calculation. However, the State Representative argued that "year" should be interpreted as the entire accounting year of the dealer, as defined in section 2(j) of the Act. The Tribunal held that the word "year" in section 6B(3)(a) should be understood as per the definition in section 2(j), meaning the entire accounting year. Thus, the turnover tax rate was correctly applied based on the aggregate turnover for the entire year, rejecting the applicants' argument.

Applicability of the proviso to section 6B(3) for marginal relief:
The second contention involved the applicability of the proviso to section 6B(3) for marginal relief in turnover tax assessment. The applicants claimed that the authorities failed to apply the proviso, which would provide them with relief in the quantum of turnover tax. The State Representative conceded that the applicants were entitled to the relief under the proviso. The Tribunal agreed with this concession, finding that the authorities erred in not extending the relief to the applicants. Consequently, the Tribunal directed the Commercial Tax Officer to grant the relief under the proviso and reassess the turnover tax payable by the applicants for the relevant period.

In conclusion, the Tribunal partially allowed the application, granting relief to the applicants under the proviso to section 6B(3) of the Bengal Finance (Sales Tax) Act, 1941. The impugned orders of assessment, appellate order, and revisional order were modified accordingly, with no costs awarded.