2006 (7) TMI 613 - AT - VAT and Sales Tax

Tribunal Upholds Jurisdiction over Sales Tax Act, Clarifies Search Powers

Pranab Kumar Saha Versus Commercial Tax Officer, Howrah Range and others & Shyamal Das Versus Assistant Commissioner Of Commercial Taxes, Bureau Of Investigation and others

The Tribunal affirmed its jurisdiction over actions under the West Bengal Sales Tax Act, 1994, excluding criminal proceedings under the Cr.P.C. It upheld ... - Issues Involved:1. Jurisdiction, power, and authority of the Tribunal over actions of the Bureau of Investigation.2. Legality of search and seizure conducted by the Bureau.3. Attachment of the petitioner's bank account.4. Arrest and harassment of the petitioner's wife by the Bureau.5. Retention of seized books of account and other records.6. Role and authority of police officers attached to the Bureau.Detailed Analysis:1. Jurisdiction, Power, and Authority of the Tribunal:The Tribunal scrutinized the jurisdiction, power, and authority of the Bureau of Investigation under the West Bengal Sales Tax Act, 1994. It was concluded that the Tribunal has jurisdiction over actions taken under the West Bengal Sales Tax Act, 1994, but not over proceedings triable by criminal courts under the Criminal Procedure Code (Cr.P.C.). The Tribunal can scrutinize actions of the Bureau until a competent criminal court takes cognizance of the offence. The Tribunal does not have jurisdiction over offences under the Indian Penal Code once the matter is under the Cr.P.C.2. Legality of Search and Seizure Conducted by the Bureau:In RN-18 of 2005, the petitioner challenged the search and seizure conducted on December 14, 2004. The Tribunal found no illegality in the search and seizure of documents under the circumstances of the case. The Tribunal emphasized that the Bureau must operate within the powers conferred by the West Bengal Sales Tax Act, 1994.3. Attachment of the Petitioner's Bank Account:The petitioner's bank account was attached by an order of the Additional Chief Metropolitan Magistrate. The Tribunal acknowledged that it could not direct the release of the account from attachment as it was beyond its jurisdiction.4. Arrest and Harassment of the Petitioner's Wife by the Bureau:The Tribunal addressed allegations that the Bureau's police wing harassed the petitioner's wife by raiding their residence at odd hours. The Tribunal modified its earlier order, directing that the police wing of the Bureau should not harass or disturb the petitioner's wife but allowed lawful steps to arrest the petitioner if there was a warrant.5. Retention of Seized Books of Account and Other Records:In RN-363 of 2004, the petitioner challenged the retention of seized books of account and other records without an order for extension. The Tribunal directed the respondents to return the seized records within three weeks unless there was a specific order of seizure under the Cr.P.C. The Tribunal allowed the respondents to retain xerox copies of relevant documents authenticated by the petitioner or his representative.6. Role and Authority of Police Officers Attached to the Bureau:The Tribunal clarified that police officers attached to the Bureau do not form part of the Bureau and are merely supporting staff. They cannot act independently or use their police powers while attached to the Bureau. Their actions must be directed by the Bureau, and they must obtain necessary permissions before taking any actions. The Tribunal emphasized that the Bureau cannot conduct investigations into offences under the Indian Penal Code once a FIR is lodged with the police.Conclusion:The Tribunal concluded that it has jurisdiction over actions taken under the West Bengal Sales Tax Act, 1994, but not over criminal proceedings under the Cr.P.C. The Bureau and its supporting staff must operate within the powers conferred by the statute, and police officers attached to the Bureau cannot act independently. The Tribunal directed the return of seized records in RN-363 of 2004 and clarified the limitations of its jurisdiction in RN-18 of 2005. Both applications were disposed of with the observations, findings, and directions mentioned, and interim orders were vacated.