2003 (7) TMI 662 - AT - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the amended proviso to section 79 of the West Bengal Sales Tax Act, 1994 regarding the deposit requirement for filing an appeal.
2. Determination of the timing of the accrual of the right of appeal in relation to the commencement of the assessment proceedings.

Analysis:
1. The case involved a challenge to the rejection of an appeal and review application against an assessment order by the Commercial Tax Officer. The amended proviso to section 79 required the deposit of 20% of the disputed tax amount at the time of filing an appeal. The Appellate Tribunal considered whether this amendment should be applied retroactively to cases where the assessment proceedings had commenced before the effective date of the amendment. The Tribunal held that the right of appeal is a pre-existing right and is not destroyed by subsequent amendments. The Tribunal referred to various legal precedents, including decisions of the Supreme Court, to support this interpretation. The Tribunal concluded that the rejection of the appeal for non-deposit of the required amount under the amended law was not justified, and therefore set aside the impugned order.

2. The petitioner argued that the right of appeal vested at the commencement of the "lis" or when the assessment proceedings were initiated, which was before the effective date of the amendment. The petitioner relied on legal principles that established the vested right of appeal from the initiation of assessment proceedings. The Tribunal agreed with this argument, emphasizing that the right of appeal is a substantive right that accrues at the beginning of the assessment process. The Tribunal cited previous decisions and legal authorities to support this position. The Tribunal held that the rejection of the appeal based on the non-deposit of the disputed tax amount was not valid in light of the timing of the accrual of the right of appeal. Consequently, the Tribunal directed the appellate authority to admit the appeal and proceed with hearing it on its merits.

In conclusion, the Appellate Tribunal ruled in favor of the petitioner, holding that the rejection of the appeal for failing to deposit the required amount under the amended law was unjustified. The Tribunal emphasized the pre-existing nature of the right of appeal and the significance of the timing of the accrual of this right in the context of assessment proceedings. The impugned order was set aside, and the appeal was directed to be admitted and heard on its merits in accordance with the law.