Decided on August 24,2011

Rama Overseas Ltd. Appellant
Sales Tax Officer, Ballygunge Charge And Others Respondents


SABYASACHI ROY, J. - (1.) IN this application under section 8 of the West Bengal Taxation Tribunal Act, 1987, M/s. Rama Overseas Ltd., the petitioner, has assailed the purported order dated October 19, 2010, passed by the Joint Commissioner of Commercial Taxes, Kolkata (South) Circle in suo motu revision for the period fourth quarters ending March 31, 2007 under the Value Added Tax Act 2003 (hereinafter referred to as, "the VAT Act"). The petitioner carries on the business of manufacturing leather gloves and for the purpose of manufacture purchases leather from both registered and unregistered dealers. The leather gloves so manufactured by the petitioner are exported outside India. This apart the petitioner also exports cotton garments manufactured by it. By an order dated June 29, 2009, the Sales Tax Officer, Ballygunge Charge (respondent No. 1) assessed the petitioner for the period fourth quarter ending March 31, 2007 and determined excess payment of input -tax credit (ITC) at Rs. 15,42,098. However without making payment of the refundable amount a suo motu revision case for the aforesaid period was initiated by the Joint Commissioner of Sales Tax, Kolkata (South) Circle (respondent No. 2) on the alleged ground of non -entitlement of the excess of input -tax credit as in allowed in the assessment order. By an order dated October 19, 2010, the suo motu revisional proceeding was disposed of by respondent No. 2 by rejecting the entire claim of input -tax credit on the alleged ground of some purchase documents being not in conformity with the relevant VAT Rules, 2005 and raising a demand of Rs. 23,40,066 to be paid by the petitioner. In this application the petitioner has challenged the legality and validity of the order dated October 19, 2010 passed by respondent No. 2 in the aforesaid suo motu revisional proceedings.
(2.) Sri S.K. Chakraborty, learned advocate appearing on behalf of the petitioner, submitted that the assessment for the period fourth quarter ending March 31, 2007 was made by respondent No. 1 after examination of books of accounts and other documents produced by the petitioner. The petitioner's claim for input -tax credit was made against the purchases made from registered dealers and on being satisfied respondent No. 1 allowed ITC to the extent of Rs. 38,82,163.75 in assessment order dated June 29, 2009 and which after adjustment with the total output tax payable determined at Rs. 23,40,065.79 resulted in excess payment of input tax credit for Rs. 15,42,098 for the aforesaid period.
(3.) IT is submitted by Sri Chakraborty that instead of allowing the refund a suo motu revision proceeding was started by respondent No. 2 on the ground that excess input -tax credit has been allowed in assessment. It was contended on behalf of the petitioner that while disposing the suo motu revision case by way of rejection of the entire claim of input -tax credit made by the petitioner, respondent No. 2 did not apply his mind to the purchase invoices produced in support of the petitioner's purchases from registered dealers and did not verify the genuineness of the purchases.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.