2000 (9) TMI 1010 - AT - VAT and Sales Tax

Tribunal overturns ex parte order, allows application under Settlement Act for private company.

Ideal Metal Industries Pvt. Ltd. and another Versus CCT. West Bengal and others

Ideal Metal Industries Pvt. Ltd. and another Versus CCT. West Bengal and others - [2001] 123 STC 615 (WBTT) Issues: Application for mandamus to cancel Memo No. 711, C.T. and admit application under Settlement Act, 1999.Analysis:1. The petitioner, a private limited company, sought mandamus for canceling Memo No. 711, C.T. and admitting an application under the Settlement Act, 1999.2. The company was assessed for additional tax and interest by the Commercial Tax Officer, which led to an appeal under the West Bengal Sales Tax Act, 1941.3. While the appeal was pending, a new law, the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, came into force on July 1, 1999.4. The company applied for settlement under the new Act, but an ex parte order was passed before the application was disposed of, denying the company the benefit of settlement.5. The respondents contended that the order was legal as the petitioner did not appear for the hearing, and the application for settlement was filed after the appeal was disposed of.6. The petitioner claimed to have been present for the hearing and alleged that the appeal was disposed of arbitrarily without giving an opportunity to be heard.7. The main issue was whether the petitioner should be given the opportunity for settlement under the new Act.8. The Tribunal considered the submissions and found that the application for settlement should be disposed of on merits to ensure substantial justice without causing loss to the State.9. The ex parte order was set aside, and the application under the Settlement Act, 1999, was directed to be admitted and decided on its merits in accordance with the law.10. The application was allowed without any order as to costs, ensuring fairness and justice in the proceedings.