2026 (2) TMI 176 - HC - VAT / Sales Tax

Delegation of revisional power under West Bengal VAT Act: delegatee's revision cannot be revised by another delegatee; earlier order quashed.

A Senior Joint Commissioner cannot revise an order made under delegated authority by a Joint Commissioner on behalf of the Commissioner; both act as ... Delegation of revisional power - suo motu revision - revision on application - orders passed by delegatee deemed to be orders of the Commissioner - prohibition on successive revisions - Whether a revision order passed u/s 86 of the West Bengal Value Added Tax Act, 2003 by a Joint Commissioner, acting as a delegatee of the Commissioner, can be subjected to further revision u/s 85 of the said Act by a Senior Joint Commissioner, who also functions as a delegatee of the Commissioner. - HELD THAT:- The fact that a Senior Joint Commissioner occupies a higher administrative position than a Joint Commissioner does not alter the legal position. Both officers exercise delegated authority derived from the same superior source, namely the Commissioner. In the absence of an express statutory provision, one delegatee cannot revise or sit in appeal over the exercise of delegated power by another delegatee when such power is exercised on behalf of the Commissioner himself. Once an order has been subjected to revision under Section 86, it cannot thereafter be revised under Section 85 of the Act of 2003. Permitting such a course of action would result in an impermissible cycle of successive revisions. An order revised under Section 86 could subsequently be revised under Section 85, which, in turn, could again be subjected to revision under Section 86, thereby creating an endless and circular process. The statutory scheme of the Act clearly does not contemplate or permit such repetitive and unending re-revision. Accordingly, it must be held that an order passed under Section 86 by a Joint Commissioner acting as a delegatee of the Commissioner cannot be subjected to further revision under Section 85 by a Senior Joint Commissioner. Section 85 does not authorise revision of an order which, in law, is deemed to be an order of the Commissioner himself. Thus, this Court is of the opinion that though the learned Judge in his order dated April 10, 2023, framed a wrong issue and dismissed the review application, the order of the Senior Joint Commissioner, Commercial Taxes dated January 7, 2015, cannot be sustained for the reasons indicated above. Therefore, this Court is not inclined to entertain this review application, and accordingly, R.V.W.O. along with I.A. is dismissed. Issues: (i) Whether an order passed under Section 86 by a Joint Commissioner exercising delegated revisional power can be subjected to further suo motu revision under Section 85 by a Senior Joint Commissioner.Analysis: Section 86 authorises revision on application and, when exercised by a delegatee, the revisional order assumes the character of an order of the Commissioner by virtue of delegation under Section 3(4) and appointment under Section 6(1). Section 85 permits suo motu revision of specified assessments and orders passed by officers appointed under Section 6(1), but does not contemplate revision of an order that, in law, is already an order of the Commissioner rendered through delegated authority. Allowing Section 85 to be used to revise an order made under Section 86 would permit repetitive re-revision by delegatees of the same superior source, producing an impermissible circularity. Statutory remedies for infirmity in a Section 86 order are confined to prescribed rectification or appellate/revisional forum under Section 87.Conclusion: It is concluded that an order passed under Section 86 by a Joint Commissioner acting as a delegatee of the Commissioner cannot be subjected to further revision under Section 85 by a Senior Joint Commissioner; Section 85 does not authorise revision of an order that is in law deemed to be an order of the Commissioner.