New Delhi, March 25: There’s bad news for traders and transporters in West Bengal: they will have to disclose the names and addresses of the consignor or the consignee on all goods challans.

Traders in the state had drawn comfort till now from a ruling of the West Bengal Taxation Tribunal which had upheld the constitutional validity of Section 2 (6) of the West Bengal Sales Tax Act 1994, but added a rider that suspended the operation of the proviso till such time as the state government devised a proper mechanism for furnishing such information.

The Supreme Court today closed that loophole when it upheld the state government’s appeal against the tribunal’s ruling.

While upholding the constitutional validity of the West Bengal Sales Tax Act and all the rules framed thereunder, the division bench of Justice Syed Shah Mohammad Quadri and Justice Ashok Bhan said “no special proforma is necessary nor any machinery required to effectuate the section. It is, therefore, difficult to uphold the reasoning of the tribunal to justify suspension of the said provision for want of machinery provisions”.

The West Bengal Sales Tax Act of 1994 was framed to replace the Bengal Finance (Sales Tax) Act of 1941 and plug rampant sales tax evasion in the state. However, the suspension of the proviso meant that traders and transporters could continue to cock a snook at the sales tax authorities.

West Bengal collects Rs 5,000 crore as sales tax every year and this could rise substantially if the Act is rigorously enforced.

The apex court ruling means that the operation of Section 2(6) of the West Bengal Sales Tax Act will be immediately enforceable. Besides particulars relating to the names and addresses of the consignor or consignee, the transporter will also have to furnish details pertaining to invoice, transport receipt, consignment note, certificate of registration (in the cases of registered traders) etc.