Debiprosad Pal, J. - (1.) The petitioner in this case is Messrs. Oriental Gas Company Limited, a company registered under the English Joint Stock Companies Act, 1862. The petitioner was producing gas for supply to industrial undertakings, hospitals and local authorities and also to the public in general for domestic consumption. The West Bengal Legislature by an Act, viz., Oriental Gas Company Act, 1960 (West Bengal Act 15 of 1960), provided for the taking over the management and control of the undertaking of the petitioner for five years with effect from the date to be specified in the notification. On 3rd October, 1960, the West Bengal Government issued three notifications, the first declaring that the said Act would come into force on 3rd October, 1960 and another notification specifying 7th October, 1960, as the date with effect from which the State Government would take over the management and control of the undertaking of the petitioner. It is stated that physical control and management was taken over on 17th November, 1960.
(2.) The petitioner claims to be a registered dealer under the Bengal Finance (Sales Tax) Act (hereinafter referred to as the Act). It appears from the order of assessment for the four quarters ending 30th June, 1959, that the petitioner filed the return in respect of the four quarters ending 30th June, 1959, on 5th December, 1958, 27th February, 1959, 1st June, 1959 and 9th September, 1959, under the relevant provisions of the Act and also paid the tax amounting to Rs. 1,66,319.63 prior to the taking over of the control and management of the undertaking of the petitioner. Thereafter, the Commercial Tax Officer made an assessment of the petitioner on 16th January, 1967 and determined the tax payable at Rs. 1,72,135.17 and also imposed a penalty under Section 11(1) of the Act for a sum of Rs. 1,000. As the petitioner has already paid the tax of Rs. 1,66,319.63, a sum of Rs. 6,815.54 was determined to be the balance amount payable by the petitioner. A notice under Section 11 of the Act in form VII was also served upon the petitioner on 10th February, 1967, calling upon it to pay the sum of Rs. 6,815.54. As the said amount demanded was not paid within the time allowed, respondent No. 3, the Commercial Tax Officer, Bhawanipur Charge, sent a letter dated 13th April, 1967, to the petitioner to pay up the dues on or before 28th April, 1967, failing which, the petitioner was warned that action under Section 11 (4B) of the Act would be taken. The petitioner thereafter sent a reply dated 2nd May, 1967, informing him that under the provision of the Oriental Gas Company Act, 1960, the State of West Bengal has been made liable for the payment of such liabilities. The Commercial Tax Officer was, therefore, requested to realise the said dues from the State of West Bengal. In spite of the said letter, respondent No. 4, the Certificate Officer, 24-Parganas, issued a notice under Section 7 of the Public Demands Recovery Act for the realisation of the sum of Rs. 6,815.54 and a certificate under Section 4 read with Section 6 of the Public Demands Recovery Act being Certificate Case No. 81 ST(BH) of 1967-68 was started against the petitioner. The petitioner challenged the said certificate proceedings and obtained a rule nisi.
(3.) The main contention urged on behalf of the petitioner is that in view of Section 4(d) of the Oriental Gas Company Act, 1960, the liability can be enforced only against the State Government which has taken over the management and control of the undertaking of the petitioner-company. The Oriental Gas Company Act, as already referred to, was enacted to provide for the taking over for a limited period of the management and control and the subsequent acquisition of the undertaking of the petitioner. Section 3 of the said Act authorises the State Government to take over for a period of 5 years with effect from the date specified in the notification the management and control of the undertaking of the petitioner. The date specified in the notification for the taking over of the management and control is to be treated as the appointed date. With effect from the said appointed date any proceeding pending or any cause of action existing before the appointed date in relation to the undertaking of the petitioner-company shall cease to be continued or enforced by or against the petitioner-company, its agents, sureties or guarantors. Such a pending proceeding or cause of action may be continued or enforced against the State of West Bengal. The question, therefore, is whether the proceeding which gave rise to the liabilities under the Act for which the recovery proceedings were initiated is a proceeding pending before the appointed date, i.e., 7th October, 196Q. The word "proceeding" has not been defined under the Act. The expression "proceeding" has been construed sometime in a narrow sense and sometime in a wider sense. The interpretation given to this expression has varied according to the intent and scope of the statutes in which this word appears. In Halsbury's Laws of England, Vol. I, page 5, paragraph 7, it is laid down : The term 'proceeding' is frequently used to denote a step in an action and obviously it has that meaning in such phrases as 'proceeding in any cause or matter'. When used alone, however, it is in certain statutes to be construed as synonymous with, or including, an action.;