DENZONG WINES (PVT.) LTD. AND ANOTHER Vs. DEPUTY COMMISSIONER OF SALES TAX, SILIGURI CIRCLE AND OTHERS

JUDGEMENT

(1.) PETITIONER No. 1, a registered dealer under the West Bengal Sales Tax Act, 1994, preferred an appeal against the assessment order dated June 28, 2006 determining the interest payable by the petitioner. While the said appeal was pending petitioner No. 1 applied for settlement of the dispute involved in the appeal under the provisions of the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 (in short, "the SOD Act"). Petitioner No. 1 received a notice dated October 20, 2008 issued by the Deputy Commissioner of Sales Tax, Siliguri Circle asking petitioner No. 1 to show cause why its appeal filed on August 31, 2006 would not be rejected. Petitioner No. 1 submitted a representation pointing out that the appeal could not be taken up for hearing so long as its application for settlement under the SOD Act was not disposed of. Inspite of such written objection the appellate authority, by his order dated November 12, 2008, dismissed the petitioners' appeal. Being aggrieved the petitioners have moved this Tribunal.

(2.) AT the time of hearing of this application Mr. Majumdar, learned State Representative, has produced before us the original records dealing with petitioner No. 1's application under the SOD Act. Mr. Majumdar has also produced the original records of the appeal. Mr. Majumdar submits that the petitioners' application under the SOD Act was rejected as far back as on April 30, 2007.

(3.) IT is surprising that the appellate authority proceeded to dispose of the appeal inspite of the specific provision of section 11 of the SOD Act. Section 11 of the SOD Act clearly provides that no appellate authority or revisional authority shall proceed to decide any appeal or revision relating to any period in respect of which an application is made under section 5 of the SOD Act. In fact under the scheme of the SOD Act an appeal or revision remains in abeyance till disposal of the dealer's application for settlement. Section 13 of the SOD Act imposes a duty on the designated authority to keep the assessing authority, appellate authority and the revisional authority informed of any order that might have been passed by the designated authority on the application for settlement. There cannot be any doubt or dispute that the appellate authority proceeded to dispose of the appeal in total disregard of the provisions of section 11 of the SOD Act and committed a jurisdictional error.