Commissioner of Sales Tax Vs Mardia Steel Ltd. (Bombay High Court)
Bombay High Court held that Section 62 of the Bombay Sales Tax Act empowers the Tribunal to rectify glaring error. Thus, earlier order which ignored binding precedents can be rectified. Writ disposed of accordingly.
Facts- M/s. Mardia Steel Ltd. was assisted by the Assistant Commissioner Sales Tax (Assessment) for the period from 01 January 1988 to 31 March 1989, which resulted in a refund of Rs. 48,000/-. However, since the payment of taxes was delayed, the Assessing Authority levied a penalty/interest u/s. 36(3)(a) of the Bombay Sales Tax Act, amounting to Rs . 14,334/-. The Deputy Commissioner of Sales Tax (Appeal) by order dated 19 January 1993 quashed the levy of interest/ penalty.
The Deputy Commissioner (Administration), by purporting to exercise the revisional powers u/s. 57(1)(a) of the Bombay Sales Tax Act, revised the Deputy Commissioner’s (Appeals) order dated 19 January 1993 and raised an additional demand on MSL to the extent of Rs. 1,40,070/-. The Deputy Commissioner (Administration) reasoned that the set off granted by the Assistant Commissioner (Assessment) was improper.
Aggrieved by the Deputy Commissioner (Administration) revisional order, MSL preferred Appeal before the Maharashtra Sales Tax Tribunal. One of the grounds to urge was that the Deputy Commissioner (Administration) was not an officer or person subordinate to the Deputy Commissioner (Appeals).
