The court rules that orders revised under Section 86 cannot undergo further revision under Section 85, preventing an endless cycle of revisions.
In a landmark judgment, the Calcutta High Court has clarified the scope of revisional powers under the West Bengal Value Added Tax Act, 2003, thereby putting an end to successive revisions that could result in an unending cycle of legal proceedings. The judgment was delivered by Justice Kausik Chanda in the case of Sales Tax Officer, Barasat Charge versus Sanjay Sur and others, addressing the powers vested in the Commissioner and his delegates under Sections 85 and 86 of the Act.
The dispute arose when the Sales Tax Officer rejected the writ petitioners' request for issuance of Form "H" declarations, a decision that was later revised by the Joint Commissioner under Section 86. However, the Senior Joint Commissioner attempted to further revise this order under Section 85, leading to legal challenges.
Justice Chanda ruled that once a revisional jurisdiction is exercised under Section 86 by a delegatee of the Commissioner, the order assumes the character of an order by the Commissioner himself. Such an order cannot be subjected to further revision under Section 85 by another delegatee, as both officers derive their authority from the Commissioner. The court emphasized that permitting such revisions would create an impermissible cycle of successive revisions, which is not contemplated by the statutory scheme.
The ruling is expected to provide clarity and prevent abuse of the legal process under the West Bengal Value Added Tax Act. It reaffirms the principle that revisional powers, once exercised, are exhausted, preventing repetitive and unending cycles of revision. The court's decision underscores the importance of maintaining the integrity of legal proceedings and the statutory framework, ensuring that orders of revision are final unless challenged through appropriate legal channels.
The judgment has significant implications for tax administration in West Bengal, potentially affecting numerous cases where successive revisions have been sought. Legal experts believe that this decision will streamline the process and prevent unnecessary delays in tax-related disputes.
Bottom Line:
Revisional orders passed under Section 86 of the West Bengal Value Added Tax Act, 2003 by a delegatee of the Commissioner cannot be subjected to further revision under Section 85 of the same Act by another delegatee, as this would result in an impermissible cycle of successive revisions.
Statutory provision(s): West Bengal Value Added Tax Act, 2003 Sections 85 and 86
Sales Tax Officer, Barasat Charge v. Sanjay Sur, (Calcutta) : Law Finder Doc id # 2847652
