1977 (4) TMI 164 - HC - VAT and Sales Tax

Summary

Issues involved: Dispute over liability to tax at 10% on a turnover, failure to file C forms for inter-State transactions, interpretation of provisions u/s 8(4) and u/r 12(7) of Central Sales Tax Act and Rules.

In the case concerning the assessment year 1973-74, the assessee contested the liability to tax at 10% on a turnover of Rs. 24,955.14 before the Sales Tax Appellate Tribunal due to not filing C forms for certain inter-State transactions. The assessing authority initially gave a deadline for filing the missing C forms, but as the assessee failed to do so, the authority proceeded with the assessment. The matter was appealed to the Appellate Assistant Commissioner without success. Subsequently, the Appellate Tribunal remanded the case back to the assessing authority to consider the claim for concessional tax rate, noting that the C forms were received after the assessment due to the assessee's unfamiliarity with tax procedures. The Tribunal directed the Appellate Assistant Commissioner to provide the C forms from the record for the assessing authority's review.

The Additional Government Pleader cited section 8(4) and rule 12(7) of the Central Sales Tax Act and Rules, emphasizing the requirement for furnishing declaration forms C and D for inter-State transactions. Section 8(1) mandates tax payment for such sales, while section 8(4) specifies the conditions for exemption, including timely submission of declarations. Rule 12(7) stipulates that form C must be submitted before assessment, with provision for extension if sufficient cause is shown. The Tribunal's decision to remand the case for assessing the C forms' acceptability was deemed correct, as per the statutory provisions. The Court found no error in the Tribunal's order and declined to interfere, noting that the assessing authority should determine the validity of the C forms and assess any negligence on the assessee's part. The revision petition was dismissed accordingly.