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TMI Blog2003 (2) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Taxes, arises from the judgment of the West Bengal Taxation Tribunal in R.N. No. 148 of 1993, dated April 7, 1995 See [1996] 100 STC 361 (Road Transport Association v. Inspector of Commercial Taxes).-Ed.. 2.. The first respondent is an association of road transporters and the second respondent is its Member and Secretary. The respondents challenged before the West Bengal Taxation Tribunal (for short, "the Tribunal") constitutional validity of the following provisions of the Bengal Finance (Sales Tax) Act, 1941, as amended in 1993 (for short "the Act"): (i) Explanation 1 to sub-section (1a-1) of section 2; (ii) sub-sections (6) and (7) of section 4C of the Act; and (iii) the legality of sub-rule (4) of rule 48L of the Bengal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsignor or the consignee, they are required to pay tax even though the goods have not by then entered the limits of the State of West Bengal and no sale or purchase of goods by the transporter takes place at that stage. 5.. In our view, a true and proper interpretation of the impugned provisions will put the controversy at rest. To understand the import of the definition "casual trader" and Explanation 1 thereto, it is necessary to read them here: "Section 2(1a-1). 'Casual trader' means a person, other than a registered dealer, who, whether as a principal or agent or in any other capacity, makes occasional purchases of goods in West Bengal for purposes other than his personal use or consumption of such goods in West Bengal or makes occasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bengal; or (b) a transporter as defined in clause (a) of the Explanation to section 14C and (c) an owner or lessee of a godown or warehouse let out to any person for storage of goods. Explanation 1, referred to above, ropes in a transporter within the meaning of the expression "casual trader", who fails to fulfil the obligation to disclose the name and address of the consignee or consignor in West Bengal or to furnish copy of invoice, challan, transporter receipt or consignment note or document of like nature in respect of any goods carried in his goods vehicle. Explanation 2 includes an owner or lessee of a godown or warehouse also within the meaning of a "casual trader" in case of failure to furnish particulars mentioned therein but th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2) of section 11, the tax payable under the main section shall be determined and collected in such manner and by such authority as may be prescribed and imposes an obligation on a casual trader to pay the same at such time and at such interval as may be prescribed. Sub-section (5) thereof deals with the procedure for production, inspection and seizure of accounts and document. 9.. Sub-sections (6) and (7) of the Act and rule 48L(4) of the rules, quoted hereunder, are at the center of the controversy. They have to be read as part of the scheme of taxation of a "casual trader" under section 4C of the Act read with rule 48L of the Rules and not in isolation. 4C. Liability to pay purchase tax by a casual trader.- (1) to (5) . . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder sub-rule (1) and directed to be paid under sub- rule (3), the goods liable to the purchase tax shall be seized for recovery of tax in the manner referred to in sub-sections (6) and (7) of section 4C." 10.. A plain reading of sub-section (6) shows that it is attracted where no one claims to be the owner of the goods in the custody of a transporter or owner or lessee of the godown or the warehouse and such a person denies his liability to pay tax under section 4C; with a view to checking evasion of tax payable thereunder, it empowers the Commissioner or any person appointed under sub-section (1) of section 3 to assist him, to seize such goods from the custody of such transporter or from the owner or lessee of the godown or warehouse, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h trader after taking into consideration the purchase bill, memo, challan, or consignment note which may be available relating to such goods. Sub-rule (4) of rule 48L of the Rules, quoted above, says that if a casual trader fails to pay the amount of tax as determined under sub-rule (1) and demanded under sub-rule (3), the goods liable to purchase tax shall be seized for recovery of tax in the manner referred in sub-sections (6) and (7) of section 4C. It is thus abundantly clear that under sub- rule (4), for the purpose of recovery of tax due, the power of seizure and sale of the goods contained in sub-sections (6) and (7) of the Act is made available to the concerned authority. 13.. From the above discussion, it is clear that the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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