Quadri, J. - (1.) The short question that arises in this appeal is:whether the word "tax" in Section 4-AA includes "turn over tax" levied under Section 4-AAA of the West Bengal Sales Tax Act, 1954
(2.) The facts giving rise to this question, lie in a short compass and are not in dispute. The appellant-company is carrying on business of the manufacture of lubricating oil and grease. It was granted certificate of registration under the West Bengal Sales Tax Act, 1954 (for short, the Act). A certificate for permanent registration as small scale industry was granted by the Directorate of Cottage and Small Scale Industries, Government of West Bengal. Under the Act, the authorities granted exemption from payment of sales tax for the period commencing from January 14, 1980 to January 14, 1985 by Certificate dated April 1, 1980. Notwithstanding the said certificate of exemption, for the period of four quarters ending on March 31, 1984, the appellant was assessed to turnover tax in a sum of Rs. 1,18,357.66p. and a penalty of Rs. 2,000/- was also imposed under Bengal Finance (Sales Tax) Act, 1941. The appellant filed appeal against the order of assessment before the Assistant Commissioner of Commercial taxes who confirmed the order of the Commercial Tax Officer that the eligibility certificate does not absolve it of the liability to pay turnover tax under Section 4-AAA of the Act. The appellant then assailed the order of the Assistant Commissioner in the West Bengal Taxation Tribunal. By its order dated June 25, 1993, the Full Bench of the Tribunal dismissed the appeal. From the said order of the Tribunal, this appeal is filed by special leave.
(3.) Mr. Bhaskar Gupta, the learned senior counsel appearing for the appellants, has contended that Section 4 is the only charging section under which the liability assumes two forms - one by way of tax at the rate prescribed under Section 4(3) and the other by way of additional tax at the rate prescribed under Section 4-AAA - and that the only difference between the two is while the burden of 'tax' under Section 4 can be passed on to the purchaser, the burden of additional tax under Section 4-AAA cannot be so passed on, therefore, it would be anomalous to think that the exemption granted under Section 4-AA applies to 'tax' but not to 'additional tax'. Such an interpretation of Section 4-AA, submits the learned counsel, would set at naught the very policy of the Government to grant tax holiday to small scale industrial units.;