- (1.) In the writ petition, the Hardware Stores, a partnership firm, is the petitioner No.l and the petitioner No.2, its partner, have challenged the order dated 25th January, 2008 passed by the Sales Tax Officer, Monoharkatra Charge, Kolkata, the respondent No.l, directing the petitioner No.l to clarify the alleged discrepancies in respect of the returns for the quarter ending on March, 2006 and the order dated 16th May, 2008 passed in revision by the Assistant Commissioner, Commercial Taxes, Burrabazar Circle, Kolkata, the respondent No.3, by holding that the Commercial Tax Officer was justified in keeping the application for Form C of the petitioner pending.
(2.) The brief facts are that the petitioner No. 1, which is duly registered under the Central Sales Tax Act, 1956 (the 'Central Act' for short) and under the West Bengal Value Added Tax Act, 2003 (for short the WBVAT Act'), is an importer of hardware goods such as nut bolts, screw, washer etc. from the suppliers of other States in bulk quantities against C Forms through Way Bills obtained from the sales tax authority and sells the same from its place of business. According to the petitioner there was no default in filing the quarterly returns. However, the Assistant Commissioner of Sales Tax, Bureau of Investigation under section 66(1) of the Central Act had issued a Memo dated 15th June, 2007 and a Memo dated 5th March, 2008 directing the petitioner to produce the entire books of account including the Way Bills, way bill register, bank statement and transportation documents relating to the years 2005-2006 and 2006-2007 which were furnished. However, the outcome is still unknown. In the meantime, the petitioner applied for seven C Forms against inter-State purchase for the quarters ending on 30th June, 2007 and 30th September, 2007. THEse have been kept pending by the respondent No.l for an indefinite period due to alleged discrepancies detected by the Bureau of Investigation in respect of the value of the goods imported from outside the State of West Bengal on the ground that the value shown in respect of eleven Way Bills for 2005- 2006 and for twenty-nine Way Bills for 2006-2007 was substantially less than that declared by the petitioner. Submission was since rules prescribed in Chapter VIA of the West Bengal Value Added Tax Rules, 2005 (in short the 'WBVAT Rules') applied mutatis mutandis in the matter of application for issue of C Forms and as assessments for the assessment years 2005-2006 and 2006-2007 have been completed, in view of the provisions contained in sections 42 and 43 of the WBVAT Act, the action of withholding Form C is illegal. It is an admitted position that as the petitioner had allegedly furnished incorrect particulars for the assessment years 2005-2006 and 2006-2007, the assessing authority under the Central Act has withheld issue of declaration Form C for the quarters ending on 30th June, 2007 and on 30th September, 2007. It is to be noted though sections 41 and 42 of the WBVAT Act speak of scrutiny of returns and verification of returns, there is no such provision in the Central Act. Therefore, whether the provisions regarding scrutiny or verifications of return under the WBVAT Act can be extended to a case where declaration Form C has been withheld in view of the provisions in the Central Act for alleged discrepancy found after scrutiny and verification of returns. The issue to be considered is whether the provisions regarding scrutiny of returns and verification of returns under sections 41 and 42 respectively of the WBVAT Act can be made applicable for issuance of declaration Form C under the Central Act.
(3.) In order to appreciate the issue it is necessary to refer to the appropriate provisions contained in the relevant rules. Rule 4(l)(b) and Rule 4(2) of the Central Sales Tax (West Bengal) Rules, 1958 are as under:- "4. Declaration in Form *C- [(1)] A declaration referred to in clause (a) of sub-section (4) of section 8 of the Act shall not be given or accepted by a dealer except in Form C obtained, on an application,- (a) ................... (b) in case of the West Bengal Value Added Tax Act, 2003, from the appropriate assessing authority or the authority referred to in rule 30-1 of the West Bengal Value Added Tax Rules, 2005.] [(2) The provisions of [rules prescribed in Chapter X of the West Bengal Sales Tax Rules 1995), (and in Chapter VIA of the West Bengal Value Added Tax Rules, 2005,] shall apply mutatis mutandis in the matter of application for and issue of Form "C" referred to in sub-rule (1) above." Rule 30H(4) of the WBVAT Rules is as under :- "30H. Manner in which and conditions subject to which, declarations in Form 12A are to be issued.- (4) If, upon scrutiny or on verification of any return furnished by the applicant under the Act or the Central Sales Tax Act, 1956 (74 of 1956), the appropriate assessing authority is satisfied that the applicant has furnished incorrect statement of his turnover of sales, or turnover of purchases of goods, or incorrect particulars of his sales, or purchases of goods in such return, he shall, for reasons to be recorded in writing, withhold the issue of declaration forms to the applicant until such time as he furnishes a receipted challan from the Government treasury or the Reserve Bank of INdia showing payment of that much amount of tax he has withheld by furnishing such incorrect statement of his turnover of sales or turnover of purchases of goods or incorrect particulars of his sales or purchases of goods in such return." As seen rule 30H (4) makes a clear distinction between a return furnished under the WBVAT Act and under the Central Act. It speaks of scrutiny or verification of "any return" furnished by the applicant under the Act (the WBVAT Act) "or" under the Central Act. The use of the word "or" in 30H(4) makes it clear that the provisions of the WBVAT Act and the Central Act shall be applicable in their respective spheres. Significantly, the framers had used the word "or" in the rule 30H(4) and not the word 'and' to disjunct the operation of the Central Act from the WBVAT Act. Language of 30H(4) is clear. There is no room for overlapping. It is to be borne in mind that due regard and due meaning should be given to each and every word used in 30H(4), particularly that of the word "or". Since under the Central Act there is no provision regarding scrutiny and verification, if the appropriate assessing authority is merely satisfied after scrutiny and verification that the applicant had furnished incorrect particulars in "any return" under the Central Act, be it a return where assessment is even complete, the said authority after recording the reasons is empowered to withhold issue of declaration Form C as has happened in this case. Thus, when Chapter VIA of the WBVAT Rules is made applicable in the matter of application for and issue of Form C, the interpretation of rule 30H(4), as discussed, has to be kept in mind. Hence, the provisions of WBVAT Act have no manner of application in the issue of declaration Form C.;