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SUPREME COURT OF INDIA
S. Mohan, M.K. Mukherjee, JJ.
Automobile Association of Eastern India - Appellant
Versus
State of West Bengal & Others - Respondents
Civil Appeal No. 4410 of 1994 Arising out of SLP (C) No. 68 of 1991
Decided On : 11-05-1994
Sales Tax - Liability of Appellant - Summary: The court considered the liability of the appellant to pay sales tax under the Bengal Finance (Sales Tax) Act, 1941. The constitutional amendment supported the levy for the period commencing from 1-10-1983. However, the question of liability for the period between January 1982 and 30-9-1983 was not raised in the appropriate form for adjudication. The appellant was permitted to raise the objection within 30 days, and if raised, it would be adjudicated upon regardless of limitation.
Fact of the Case:
The court considered the liability of the appellant to pay sales tax under the Bengal Finance (Sales Tax) Act, 1941. The constitutional amendment supported the levy for the period commencing from 1-10-1983. However, the question of liability for the period between January 1982 and 30-9-1983 was not raised in the appropriate form for adjudication. The appellant was permitted to raise the objection within 30 days, and if raised, it would be adjudicated upon regardless of limitation.
Finding of the Court:
The court found that the appellant was liable to pay sales tax for the period commencing from 1-10-1983 due to the constitutional amendment. However, the question of liability for the period between January 1982 and 30-9-1983 was not adjudicated due to the form in which it was raised. The appellant was permitted to raise the objection within 30 days, and if raised, it would be adjudicated upon regardless of limitation.
Issues: The main issue was the liability of the appellant to pay sales tax under the Bengal Finance (Sales Tax) Act, 1941, specifically for the period between January 1982 and 30-9-1983.
Ratio Decidendi: The court's decision was influenced by the failure to raise the question of liability for the period between January 1982 and 30-9-1983 in the appropriate form for adjudication. The appellant was permitted to raise the objection within 30 days, and if raised, it would be adjudicated upon regardless of limitation.
Final Decision: The appeal was ordered with the appellant being permitted to raise the objection as to his liability for payment of sales tax for the period from January 1982 to 30-9-1983 within 30 days from the date of the order, and if raised, it would be adjudicated upon regardless of limitation.
ORDER :
1. Special leave granted.
2. The short question that arises for our consideration is whether the appellant is liable to pay sales tax, under the Bengal Finance (Sales Tax) Act, 1941.
3. For the period commencing from 1-10-1983 in view of the constitutional amendment, the levy can easily be sustained. But for the period between January 1982 and 30-9-1983 whether in view of the decision of this Court in CTO v. Young Men's Indian Assn., (1970) 1 SCC 462 he would be liable to pay sales tax or not is a question which unfortunately was not raised in that form and therefore there has not been any adjudication. We permit the appellant to raise his objection as to his liability for payment of sales tax for the period from January 1982 to 30-9-1983 within 30 days from today before the assessing authority. If so raised within the said period, that shall be adjudicated upon regardless of limitation. If the appellant is aggrieved, he could pursue such remedies as are available to him.
4. The appeal is ordered in the above terms.
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