1985 (8) TMI 341 - HC - VAT and Sales Tax

Issues Involved:
1. Compliance with Section 40 of the Delhi Sales Tax Act, 1975, and Rule 34 of the Delhi Sales Tax Rules, 1975.
2. Application of Rule 7(3) of the Delhi Sales Tax Rules, 1975, regarding loss of declaration forms due to fire.
3. Validity of the rejection of the petitioner's application by the Commissioner of Sales Tax and the Appellate Tribunal.
4. Maintainability of the writ petition in light of an alternative remedy.

Issue-wise Detailed Analysis:

1. Compliance with Section 40 of the Delhi Sales Tax Act, 1975, and Rule 34 of the Delhi Sales Tax Rules, 1975:
The petitioner, a proprietary concern dealing in motor parts and accessories, opened an additional place of business on 27th May 1982. According to Section 40 of the Delhi Sales Tax Act, 1975, and Rule 34 of the Delhi Sales Tax Rules, 1975, the petitioner was required to inform the appropriate authority within 30 days. The petitioner furnished this information on 5th June 1982, which was within the 30-day period. The court noted that the authorities rejected the application on the ground that it was received after the fire, but this was immaterial as the 30-day period had not expired.

2. Application of Rule 7(3) of the Delhi Sales Tax Rules, 1975, regarding loss of declaration forms due to fire:
Rule 7(3) provides that a dealer can be exempted from furnishing declarations if lost due to fire or flood, provided an application is made within 30 days of the event, and the loss occurs at the place of business. The petitioner claimed that a fire on 31st May 1982 destroyed their records, including ST-1 forms. The Commissioner of Sales Tax and the Appellate Tribunal rejected the petitioner's claim, arguing that the new place of business was not officially recognized at the time of the fire. However, the court found that the petitioner had indeed opened the new place of business and informed the authorities within the statutory period.

3. Validity of the rejection of the petitioner's application by the Commissioner of Sales Tax and the Appellate Tribunal:
The Commissioner of Sales Tax rejected the application on the grounds that the information about the new place of business was received after the fire. The Appellate Tribunal upheld this decision, stating that the delay in receiving the application was the petitioner's responsibility. However, the court disagreed, noting that the petitioner had 30 days to inform the authorities, and the fire occurred within this period. The court found no reason to reject the application based on the timing of the information reaching the authorities.

4. Maintainability of the writ petition in light of an alternative remedy:
The respondents argued that the writ petition was not maintainable due to the existence of an alternative remedy by way of a reference to the Appellate Tribunal. The court, however, noted that the Tribunal's decision was based on a factual finding rather than a question of law, making the alternative remedy inadequate. The court also emphasized the seriousness of the matter, involving the destruction of documents due to fire and the subsequent rejection of the petitioner's legitimate claims.

Conclusion:
The court concluded that the petitioner had complied with the requirements of Section 40 and Rule 34, and the rejection of the application by the Commissioner of Sales Tax and the Appellate Tribunal was unjustified. The court issued a writ directing the respondents to grant the petitioner the benefit of Rule 7(3) and to make appropriate changes in the assessment orders. The court also awarded costs to the petitioner.

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