Successor-in-office cannot review an assessment order; excess tax payment triggered refund, interest, and token costs.

The Bengal Finance (Sales Tax) Act, 1941 and the Bengal Sales Tax Rules, 1941 do not authorise a successor-in-office to conduct a second review of an assessment order; rule 82 was read as excluding such review and leaving revision to the prescribed higher authority instead. On the facts, no revision had been pursued, so the proposed review was impermissible. Where the review order itself recorded excess tax payment, the department was bound to issue refund, and the assessee was also entitled to statutory interest under section 10-B and token costs because it had been compelled to approach the Tribunal for disposal of the review application.

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Issues: (i) Whether a successor-in-office could undertake a review of the assessment order under the Bengal Finance (Sales Tax) Act, 1941 and the Bengal Sales Tax Rules, 1941; (ii) Whether the assessee was entitled to refund, interest and costs upon the review order finding excess tax payment.

Issue (i): Whether a successor-in-office could undertake a review of the assessment order under the Bengal Finance (Sales Tax) Act, 1941 and the Bengal Sales Tax Rules, 1941.

Analysis: The relevant statutory scheme was examined and it was found that section 20(4) of the 1941 Act and rule 82 of the Bengal Sales Tax Rules, 1941 did not authorise review by a successor-in-office. Rule 82 was read as expressly negativing such review and, instead, permitting recourse to revision before the higher authority within the prescribed time. In the facts, no revision had been made by the respondent.

Conclusion: The proposed second review by the successor-in-office was not permissible.

Issue (ii): Whether the assessee was entitled to refund, interest and costs upon the review order finding excess tax payment.

Analysis: Once the review order had recorded that excess tax had been paid, the Tribunal held that the department was bound to issue the refund payment order. The claim for costs was considered reasonable because the assessee had earlier been compelled to approach the Tribunal for disposal of the review application. The Tribunal also held that there was no reason to deny interest on the refundable amount under section 10-B of the 1941 Act.

Conclusion: The assessee was entitled to refund of the excess tax, interest on the refundable amount, and token costs.

Final Conclusion: The application was allowed in substance and the respondent was directed to complete the refund, pay statutory interest, and bear token costs, thereby granting effective relief to the assessee.

Ratio Decidendi: Where the governing tax rules prohibit review by a successor-in-office, any attempted second review is without authority, and upon a finding of excess tax payment the assessee is entitled to refund together with interest and appropriate costs.

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