2009 (1) TMI 817 - AT - VAT and Sales Tax

Special Commissioner's Failure to Exercise Revisional Power on TSPP Grievance

The Tribunal held that the Special Commissioner erred in failing to exercise suo motu revisional power to address the petitioner's grievances regarding ... - Issues involved:1. Exercise of suo motu revisional power under section 80 of the West Bengal Sales Tax Act, 1994.2. Interpretation of the scope and conditions for exercising suo motu revisional power.3. Consideration of the power of review under section 83 of the 1994 Act.4. Failure to address grievances regarding determination of taxable specified purchase price (TSPP).5. Obligation of statutory authorities to exercise conferred powers.Analysis:1. The petitioner sought revision against an appellate order under section 79(1) of the West Bengal Sales Tax Act, 1994, claiming arbitrary determination of GT, TT, TSPP, and levy of interest. The Additional Commissioner disposed of the revision without considering the TSPP grievance, leading to a subsequent application for reconsideration of the order.2. The Special Commissioner, in the impugned order, incorrectly believed that suo motu revisional power could only be used when mistakes were apparent on the face of records with substantial impact. The Tribunal clarified that such power is exercised upon identification of mistakes affecting the final result, even if not highlighted by revenue authorities or detrimental to revenue interests.3. The Tribunal emphasized that the Special Commissioner should have exercised suo motu revisional power due to the apparent mistake of not addressing the petitioner's TSPP grievance. Alternatively, the power of review under section 83 should have been utilized, as referred to by the petitioner in the application.4. It was highlighted that failure to exercise vested statutory powers is an error requiring rectification by a higher forum, and that statutory authorities should not be deterred by the fear of multiple applications. The Tribunal set aside the impugned order and directed the Special Commissioner to reconsider the petitioner's TSPP grievance on its merits.5. The judgment concluded by disposing of the application without costs, emphasizing the obligation of statutory authorities to exercise conferred powers when circumstances necessitate, irrespective of potential application influx.