1997 (7) TMI 645 - AT - VAT and Sales Tax

Tribunal overturns time-bar ruling in tax case, emphasizes law applies to pending cases

The Tribunal allowed the application challenging the decision of the West Bengal Commercial Taxes Appellate and Revisional Board, holding that the ... - Issues:1. Challenge against the finding of the West Bengal Commercial Taxes Appellate and Revisional Board regarding an order of assessment.2. Determination of whether the impugned assessment was barred by limitation.Analysis:The judgment involves an application under section 8 of the West Bengal Taxation Tribunal Act, 1987 challenging a decision of the West Bengal Commercial Taxes Appellate and Revisional Board regarding an order of assessment made by the Commercial Tax Officer and affirmed by the appellate authority. The issue at hand is whether the assessment in question was barred by limitation. The assessment in question pertained to the business account of a registered dealer for the 4 quarters ending on March 31, 1987, completed on May 10, 1991. The Board struck down the assessment and the appellate order on the grounds of being beyond the period of limitation, leading to the filing of the present application before the Tribunal.The crux of the matter lies in the interpretation of the relevant provision, section 11(2a) of the 1941 Act, both before and after an amendment that came into force on June 1, 1987. The contention put forth was that the amendment extended the period of limitation, making the impugned assessment timely. The Board, however, held that the amendment did not apply to the assessment in question. The Tribunal disagreed with this view, emphasizing that any amendment to procedural law, including limitation provisions, applies to pending proceedings. The Tribunal cited precedents to support this stance, highlighting that the amended law governs the liability of the assessee if the period of limitation was enlarged before the assessing authority's right was barred.The Tribunal noted that the respondent's advocate failed to dispute this legal position with any relevant authorities. Consequently, the Tribunal held that the Board erred in deeming the assessment as time-barred. As a result, the Tribunal allowed the application, setting aside the Board's decision and declaring the assessment as not barred by limitation. No costs were awarded in this matter. The Technical Member of the Tribunal concurred with this decision, and the application was ultimately allowed.