Sabyasachi Mukharji, J. - (1.) The subject-matter of challenge in this application under Article 226 of the Constitution is a certificate filed under Section 7 of the Bengal Public Demands Recovery Act, 1913. In view of the fact that several contentions were urged in respect of the said certificate it is relevant to refer to the said certificate, which is as follows : JUDGEMENT_124_STC40_1977Html1.htm Name of district: 24-Parganas. I certify that the sums mentioned hereinbefore are due to the certificate-holder by the certificate-debtor(s) and that they are justly recoverable, the recovery by suit not being barred by law. Dated this 26th day of November, 1968.
(2.) The said certificate is being challenged as without jurisdiction on three grounds. It was, firstly, contended that the certificate was wrongly filed in the name of the State of West Bengal. In the impugned certificate, the name and address of the certificate-holder has been indicated to be the State of West Bengal. It was contended that inasmuch as the said certificate related to the claims arising out of the dues under the Central Sales Tax Act, 1956, the certificate-holder would not be the State of West Bengal. It was contended that the said certificate covered claims for penalty payable on account of late submission and non-submission of the return under the Central Sales Tax Act, 1956 and imposition of penalty for non-submission or late submission under that Act was without authority of law. It was, thirdly, submitted that the certificate was filed under Section 4 as well as under Section 5 of the Bengal Public Demands Recovery Act, 1913, which was irregular and not in accordance with law.
(3.) The first question, therefore, that requires consideration in this case is whether in the certificate the name of the certificate-holder was properly indicated or in other words whether the State of West Bengal was the certificate-creditor in this case. As mentioned hereinbefore the dues in respect of the said certificate arose out of the assessment made under the Central Sales Tax Act, 1956. Section 9 of the Central Sales Tax Act, 1956, provides as follows : 9. Levy and collection of tax and penalties.-(1) The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within Clause (a) or Clause (b) of Section 3, shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provisions of Sub-section (2), in the State from which the movement of the goods commenced: Provided that, in the case of a sale of goods during their movement from one State to another, being a sale subsequent to the first sale in respect of the same goods, the tax shall, where such sale does not fall within Sub-section (2) of Section 6, be levied and collected in the State from which the registered dealer effecting the subsequent sale obtained or, as the case may be, could have obtained, the form prescribed for the purposes of Clause (a) of Sub-section (4) of Section 8 in connection with the purchase of such goods. (2) Subject to the other provisions of this Act and the Rules made thereunder, the authorities for the time being empowered to assess, reassess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax, including any penalty, payable by a dealer under this Act as if the tax or penalty payable by such a dealer under this Act is a tax or penalty payable under the general sales tax law of the State; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, refunds, rebates, penalties, compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly : Provided that if in any State or part thereof there is no general sales tax law in force, the Central Government may, by rules made in this behalf make necessary provision for all or any of the matters specified in this sub-section. (3) The proceeds in any financial year of any tax, including any penalty, levied and collected under this Act in any State (other than a Union territory) on behalf of the Government of India shall be assigned to that State and shall be retained by it; and the proceeds attributable to Union territories shall form part of the Consolidated Fund of India. ;