1978 (8) TMI 189

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....e basis that on perusal of a report dated 21st February, 1975, of the Commercial Tax Officer, Alipore Charge, a prima facie case was found that the dealer in question had mala fide used declaration forms which he had received from the Commercial Tax Officer concerned. The order, further, states as follows: "It also transpired that for one particular transaction made, the dealer issued two declaration forms, Nos. C 695557 dated 3rd February, 1969, and C 004180 dated 22nd April, 1969. It, further, transpired that M/s. East India Sales & Service Corporation, 1, Bonfield Lane, Calcutta-1, issued one declaration form to the dealer, M/s. Paharpur Cooling Towers (P.) Ltd., against purchase of goods as per Bill No. WS/27 dated 21st June, 1969, f....

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....engal Finance (Sales Tax) Act, 1941, in the context of what has been stated earlier. I am also of the opinion that it would be fair and reasonable to demand a security of Rs. 50,000 in the instant case under section 7(4a)(ii) of the Bengal Finance (Sales Tax) Act, 1941." The propriety of this order is challenged in this application. The Commissioner may under section 7(4a)(ii) of the Act for good or sufficient reasons to be recorded in writing demand from any registered dealer or any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act, 1910 (9 of 1910), reasonable security for the proper use and safe custody of the forms referred to in t....

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.... was passed by the Additional Commissioner. It is true that he has perused the report of the Commercial Tax Officer but from this it could not be said that the order was the order of the Commercial Tax Officer. It is only to be expected that the Additional Commissioner or the Commissioner would act on a perusal of the report. So long as reasonable opportunity is given to the party concerned, to show cause, in my opinion, there is no impropriety for the Additional Commissioner to act in the manner he did. It was, lastly, contended that the security required was wholly unreasonable. It is submitted that the two forms on the basis of which the impugned order had been passed were all obsolete and as the said forms were no longer in use and, ....