1994 (3) TMI 351 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to the direction to pay Rs. 4 crores against a demand of Rs. 6,29,61,487 raised for the assessment year 1991-92 under the Central Sales Tax Act, 1956.

Analysis:
The petitioner, a registered dealer under the Act, contested the assessment completed ex parte due to non-production of relevant books of accounts and declaration forms. The Assistant Commissioner directed payment of Rs. 5 crores pending appeal. The petitioner moved the High Court seeking direction to the revisional authority to consider the revision application. The Additional Commissioner's order was challenged, alleging that the order of assessment was ante-dated, and various forms were submitted post-assessment. The revisional authority rejected the plea of ante-dating and non-compliance, directing payment of Rs. 4 crores considering financial difficulty.

The petitioner contended that the revisional authority failed to consider discrepancies and difficulties faced in presenting declaration forms. The petitioner argued that the direction to pay Rs. 4 crores was arbitrary and disregarded financial constraints. The law allows acceptance of declaration forms at different stages if sufficient cause is shown for non-production during assessment. Negligence in producing forms may impact the claim for deductions. The petitioner emphasized the importance of efforts made to obtain declaration forms and the equitable treatment of selling dealers.

The judgment highlighted the significance of accepting declaration forms to determine tax liabilities accurately. The Court acknowledged the forms produced before the Assistant Commissioner and revisional authority, which could reduce the tax demand significantly. The Court directed the petitioner to pay a specified amount by a certain date, staying the balance realization pending the first appeal's disposal. Any payment made towards the disputed amount would be adjusted from the specified amount. The judgment was delivered by two judges, with both concurring on the disposal of the writ application.

This detailed analysis covers the issues raised in the legal judgment, emphasizing the arguments presented by the petitioner, the considerations of the revisional authority, and the Court's final directives regarding the payment and stay of realization pending appeal.