1978 (3) TMI 201 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Disallowance of declarations in form C and certificates in form E-1 by the Tribunal.
2. Sufficiency of the explanation provided by the assessee for furnishing the declarations and certificates for the first time before the first appellate authority.

Detailed Analysis:

Issue 1: Disallowance of Declarations in Form C and Certificates in Form E-1 by the Tribunal

The Tribunal disallowed the declarations in form C and the certificates in form E-1 furnished before the first appellate authority. The assessee, a registered dealer under the Central Sales Tax Act, did not produce these documents during the assessment despite multiple opportunities provided by the Sales Tax Officer. The Tribunal found that the assessee had sufficient opportunities to obtain and present the necessary forms before the assessment was completed but failed to do so. The Tribunal reasoned that accepting such forms at the appellate stage without convincing grounds would allow the assessee undue flexibility in filing forms at their convenience, which would undermine the assessment process.

Issue 2: Sufficiency of the Explanation Provided by the Assessee

The assessee argued that despite best efforts, the declarations and certificates could not be obtained before the assessment was completed and should be accepted at the first appellate stage. The first appellate authority and the Tribunal rejected this explanation, stating that the assessee had ample opportunity to produce the documents before the assessment was finalized. However, the High Court noted that the correspondence indicated the assessee's genuine efforts to obtain the forms. It was observed that the first appellate authority did not adequately consider this correspondence, and the Tribunal also failed to give it due weight.

Conclusion:

The High Court concluded that the assessee had provided a sufficient explanation for the delay in furnishing the declarations in form C and the certificates in form E-1. The court held that these documents should have been accepted by the first appellate authority. The High Court emphasized that while the assessee does not have the right to choose the stage at which to produce these forms, sufficient cause shown for the delay should allow for their acceptance at the appellate stage. Consequently, the second question was answered in favor of the assessee, indicating that the explanation provided was sufficient and the forms should have been acted upon. The first question was not directly answered as the conclusion on the second question rendered it unnecessary.

Judgment:

The High Court answered the reference accordingly, with no direction for costs.