TaxTMI 
TaxTMI 
TaxTMI 
1973 (2) TMI 127
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....also sells goods manufactured by it In the market. The petitioner is a "registered dealer" within the meaning of the Bengal Finance (Sales Tax) Act, 1941, as well as under the Central Sales Tax Act, 1956. The petitioner from time to time, according to the petitioner, applied for declaration forms from the Commercial Tax Officer, Jorasanko Charge, who is the officer for such purpose in regard to the petitioner and the said officer has from time to time furnished the petitioner with necessary declaration forms. The petitioner has stated that some declaration forms were furnished to the petitioner for the last time in February, 1972, and since then the Commercial Tax Officer being respondent No. 5 has refused to furnish further declaration forms to the petitioner. The petitioner submitted applications for supply of declaration forms on 8th September, 1972, 14th September, 1972, and 25th September, 1972, but such declaration forms have not been supplied to the petitioner. The various parties from whom the petitioner purchased various goods have been insisting on the petitioner's furnishing them with the sales tax declaration forms or in lieu thereof the amount of sales tax payable on t....
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....ticular sub-clause (ii) thereto is relevant for the purpose of the instant application. The said section is set out hereunder: "Section 5. (2) In this Act the expression 'taxable turnover' means in the case of a dealer who is liable to pay tax under section 4 or under subsection (3) of section 8, that part of his gross turnover during any period which remains after deducting therefrom- (a) his turnover during that period on (i) .......................... (ii) sales to a registered dealer of goods referred to in section 14 of the Central Sales Tax Act, 1956, and goods included in Schedule II, specified in the certificate of registration of such dealer as being intended for resale by him in West Bengal, and of containers and other materials for the packing of such specified goods." Section 4 of the said Act is the charging section and imposes the liability to pay sales tax upon sellers. Section 5 of the Act deals with the rate of tax. Sub-section (1) of section 5 of the Act lays down the rate of tax payable by such dealers at the rates and on the goods mentioned in the several clauses to the said sub-section. Sub-section (2) of the said section defines "taxable turnover" and l....
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....stered dealer or the owner or representative of an undertaking, as the case may be, shall apply in writing to the appropriate Commercial Tax Officer stating separately his requirements for each kind of such forms and shall furnish such other particulars, statements and information and produce such other documents as the Commercial Tax Officer may require for the purpose of satisfying himself about the bona fide use of such forms of all kinds issued to the applicant on previous occasions and the bona fide nature of the applicant's requirement of such forms applied for on the present occasion. (2)(a) If for reasons to be recorded In writing- (i) the Commercial Tax Officer is not satisfied that the applicant for declaration forms made bona fide use of such forms of all kinds previously issued to him or that he bona fide requires such forms applied for, the Commercial Tax Officer may reject the application; (ii) the Commercial Tax Officer is not satisfied that the applicant bona fide requires such forms in such numbers as he has applied for, the Commercial Tax Officer may issue such forms in such lesser numbers as, in his opinion, would satisfy the reasonable requirement of the appl....
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....in, clause (b) and clause (c), the Commercial Tax Officer would reject the application for furnishing declaration forms. Reasons for such rejection in case the same was made under sub-clause (i) or (ii) of clause (a) of sub-rule (2) of rule 27AA had to be recorded in writing by the Commercial Tax Officer. In other cases not covered by clause (a) or (b) or (c) of sub-rule (2) of rule 27AA, it is incumbent upon the appropriate Commercial Tax Officer to issue the requisite number of declaration forms to the registered dealer who had applied for the same. Mr. Das Gupta contended that rule 27A(1) of the Rules made it imperative upon the Commercial Tax Officer to furnish the registered dealer with declaration forms 'on demand' by such dealer. I am, however, unable to accept the said contention of Mr. Das Gupta. The nominative in the sentence which contains the words 'on demand' in the said sub-rule is a dealer who wishes to claim the benefit of lower rate of tax.........or who wishes to deduct from his gross turnover the amount in respect of a sale on the ground that he is entitled to make such deduction under the provisions of sub-clause (ii) of clause (a) of sub-section (2) of section ....
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....tions subject to which and the authority from which such form shall be obtainable, and the manner in which such declarations are to be furnished; (c) the taxable quantum for particular classes of dealers under clause (b) of sub-section (5) of section 4; (d) the other sales, turnover in respect of which may be deducted from a dealer's gross turnover in computing his taxable turnover as defined in section 5; (e) the authority to which application for registration under section 7 or section 8, or for special certificate under section 7A shall be made; (f) the procedure for, and other matters incidental to, the registration of dealers and the granting of certificates of registration, and the form of such certificates under section 7 or section 8; (ff) the procedure for and other matters incidental to the granting of special certificates under section 7A and the form of such certificates; (g) the intervals at which, and the manner in which, the tax under this Act shall be payable under section 10; (h) the returns to be furnished under sub-section (2) of section 10, and dates by which, and the authority to which, such returns shall be furnished; (i) the date by which returns for ....
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.... 388 (S.C.); A.I.R. 1958 S.C. 909. The Bengal Finance (Sales Tax) Act is a taxing statute and only the details for working out the laws of the said Act in regard to the matters mentioned in section 26 of the Act has been left to the executive authority to be determined by framing the rules. The said section or any of the rules framed under the said section, therefore, cannot be said to be ultra vires the Constitution on account of excessive delegation. Mr. Das Gupta contended that the conditions laid down in clauses (a), (b) and (c) of sub-rule (2) of rule 27AA are stringent, unreasonable and restrictive of the petitioner's right to trade guaranteed under the Constitution. In support of his contention Mr. Das Gupta relied on the case of R.C. Cooper v. Union of IndiaA.I.R. 1970 S.C. 564. Mr. Das Gupta relied in particular on paragraphs 76 and 77 of the judgment of Shah, J., appearing at page 602 of the said Reports. It must be noted that in the aforesaid case restriction was imposed upon the right of the named banks to carry on even nonbanking business although theoretically the right of the said banks to carry on the said non-banking business was declared by the impugned provisio....
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.... Issued to him and how many were withheld. In that state of affairs, I am unable to accept the said contention of Mr. Das Gupta as well. Section 14 of the Act confers power upon the Commissioner of Commer. cial Taxes to have documents produced before him for the purpose of Inspection. Sub-section (3) to the said section confers also the power to seize documents in the hands of traders. The said sub-section reads as follows: "(3) If the Commissioner has reason to suspect that any dealer is attempting to evade payment of any tax under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of the dealer as may be necessary, and shall grant a receipt for the same, and shall retain the same only for so long as may be necessary for examination thereof or for a prosecution." For the aforesaid purpose the power to enter and search place of business of any dealer or any other place where the Commissioner may have reason to believe that the dealer keeps or is for the time being keeping any accounts, registers or documents of his business. It appears from the said sub-section (3) to section 14 that the condition precedent to the exercise of the ....