Back
Supreme Court Of India
SALES TAX OFFICERS - Appellant
Versus
DUTTA TRADERS - Respondent
Civil Appeal 7540 Of 2001
Decided On : 09/18/2007
Advocates Appeared :
A.K.SANGHI, KIRTI RENU MISHRA, RAKESH DWIVEDI, Rono Mohanty
Sales Tax - Jurisdiction of Sales Tax Officer (Vigilance) - Orissa Sales Tax Act, 1947, Central Sales Tax Act, 1956 - Section 16-D, Section 17, Section 3(1), Section 3(3), Section 16-A, Section 16-D
Fact of the Case:
The respondent, a wholesale dealer in biscuits, was charged with tax and penalty under the Orissa Sales Tax Act, 1947. The main contention was the competence of the Sales Tax Officer (Vigilance) to make the assessment and realization of the amounts.
Finding of the Court:
The High Court's judgment was set aside, and it was held that the Sales Tax Officer (Vigilance) was entitled to assess and recover the tax as per the provisions of the Act. The court expressed no opinion on the quantification of the tax and penalty, allowing the respondent to pursue appropriate proceedings before the appropriate authority.
Issues: The issues involved the competence of the Sales Tax Officer (Vigilance) to make the assessment and realization of tax and penalty under the Orissa Sales Tax Act, 1947.
Ratio Decidendi: The court interpreted the provisions of the Orissa Sales Tax Act, 1947, particularly Section 16-D, and held that the Sales Tax Officer (Vigilance) had the authority to assess and recover tax on the spot, distinct from the regular assessment under Section 12 of the Act.
Final Decision: The Civil Appeal was allowed, setting aside the High Court's judgment, with no order as to costs.
( 1 ) RESPONDENT is a wholesale dealer in biscuits of different brands under the provisions of the Orissa Sales Tax Act, 1947 and Central Sales Tax Act, 1956. On 14th October, 1999, goods were being unloaded from vehicle no. WB-24-A-0112 when the Investigating Officer of Vigilance wing, Balasore Division, found certain irregularity and, accordingly, the Sales Tax Officer (Vigilance), raised a sum of Rs. 32,592. 00 as tax and Rs. 54,320. 00 as penalty under Section 16-D of the Orissa sales Tax Act, 1947 (for short, the Act ).
( 2 ) THE main contention of the respondent is that the Sales Tax Officer (Vigilance)is not competent to make assessment under Section 16-D of the Act inasmuch as he is an officer under the control of Inspector General of Police (Vigilance) and has no power to make assessment.
( 3 ) UNDER notification dated 14th May, 1997, the Commissioner delegated his powers and duties under Section 16-D of the Act to the sale's Tax Officers and Inspectors of Sales Tax Department. The said notification was issued under Section 3 (3) of the Act. The notifications issued indicate officers by designation who have been conferred with the powers of the Commission.
( 4 ) BY a cryptic order, the High Court opined that since the Sales Tax Officer (Vigilance) had been functioning under the Inspector General of Police (Vigilance), he was not competent to realize the amount and, therefore, the realization of the aforestated amounts as tax and penalty was without jurisdiction and, accordingly, the order of the Additional Commissioner dated 1st January, 2000 stood quashed. Against the said judgment, the Department has come to this Court by way of Civil appeal.
( 5 ) TWO questions arise for consideration in this Civil Appeal. Firstly, whether the high Court was right in holding that the Sales Tax Officer (Vigilance)was not entitled to realize the aforestated amounts as he has been functioning under the Inspector General of Police (Vigilance ). The second question is whether the Sales Tax officer (Vigilance) was entitled to assess and recover/realize the sum of Rs. 32,592/-as tax from the assessee.
( 6 ) ON the first question, we quote hereinbelow Section 17 of the Act.
"17. Delegation of Commissioner's Functions.-Subject to such conditions and restrictions as the State government may, by general or special order, impose, the Commissioner may, by order in writing, delegate any of his powers and duties under this Act or the rules made thereunder, to any person appointed under Section 3 to assist him. "
On reading Section 17 of the Act, it is clear that the Commissioner is empowered, by an order in writing, to delegate any of his powers and duties under the Act to any person appointed under Section 3 to assist him.
( 7 ) FOR the sake of clarity, we quote hereinbelow Section 3 (1) of the Act.
"3. Taxing authority- (1) The State Government may appoint any person to be the Commissioner of sales Tax, Orissa and he shall exercise such powers and discharge such functions as are or may be conferred or imposed by or under the provisions of this Act. "
On reading Section 3 (1), it is clear that the State Government may appoint any person to be the Commissioner of Sales Tax and he shall exercise such powers and discharge such functions as may be conferred or imposed on him under the provisions of the Act.
( 8 ) IN the present case, on 14th May, 1997, following notification was issued by commissioner of Sales Tax under which he has delegated his powers and duties, inter alia, under Section 16-D of the Act, to Sales Tax Officers and to the Inspectors of Sales Tax appointed under Section 3 (3) of the Act.
OFFICE OF THE COMMISSIONER of COMMERCIAL TAXES :
ORISSA : CUTTACK :
No. V (VI)45 /97. ??????????????? 110008/c. T. : ????????????????? Dated : 14-5-97
NOTIFICATION
? In exercise of the powers conferred by Section 17 of the O. S. T. Act, 1947 (Orissa Act 17 of 1947) I, s. K. Samantaray , I. A. S. , Commissioner of Sales tax, Orissa do here
AI
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
