- (1.) IN this application filed under Section 8 of the West Bengal Taxation Tribunal Act, 1987, the petitioner has challenged the orders dated September 22, 1999 and May 25, 2001 of the revisional authority and the Appellate and Revisional Board respectively wherein readymade garments made by the petitioner were treated as sales of the "garments made to order".
(2.) THE petitioner is a manufacturer of readymade garments for sale of those to the defence authority and since long paying tax at the rate of 3 per cent. But the learned Deputy Commissioner all on a sudden held in his order dated September 22, 1999 that the garments were not readymade garments rather, are made for the use of defence personnel according to the order placed by the authority. The rate of tax, therefore, was held to be 4 per cent and not 3 per cent. The Appellate and Revisional Board also took the same view and confirmed the order of the learned Deputy Commissioner.
(3.) IT is argued on behalf of the petitioner that since long it is being accepted by the Revenue that the garments supplied by the petitioner to the defence authority are the "readymade garments" and not the "garments made to order" and tax at the rate of 3 per cent is being levied. According to the petitioner, the user since has no choice for design, measurement, colour, etc., those garments are never made to order. Moreover, manufacture of such garments is done in a bulk and not for a particular person only. There is also no direct link in such a case between the manufacturer and customer. The findings of the learned Deputy Commissioner and Appellate and Revisional Board are erroneous based on incorrect appreciation of facts of the case. Raising the question of applicability of the principle of res judicata in this case, it is further submitted relying on decisions reported in Radhasoami Satsang v. Commissioner of Income -tax [1992] : 193 ITR 321 (SC) and Smithkline Beecham Consumer Healthcare Ltd. v. Deputy Commissioner, Commercial Taxes [2002] 128 STC 189 (WBTT) supra ; (2000) 36 STA 44 - -that the Revenue since long back is levying tax at the rate of 3 per cent accepting the garments as readymade garments. Thus, the issue in controversy had already been settled. The principles of res judicata therefore, apply. The position since has been accepted without challenging the previous orders, it cannot be allowed to be changed from subsequent year.;