1995 (3) TMI 431 - AT - VAT and Sales Tax

Summary

Issues: Interpretation of rule 27AA and 27A(4) regarding issuance of declaration forms after cancellation of registration certificate.

The judgment by the Appellate Tribunal of the West Bengal Taxation Tribunal involved the interpretation of rules 27AA and 27A(4) in the context of issuance of declaration forms after the cancellation of a registration certificate. The applicant, a partner of a registered dealer, had applied for declaration forms covering purchases made prior to the cancellation of the registration certificate. The Commercial Tax Officer and subsequent authorities rejected the application based on rule 27A(4, which required the return of unused declaration forms after cancellation of registration. The applicant argued that a registered dealer should be treated as such until the date of cancellation and should be eligible for declaration forms for purchases made before cancellation. The respondents contended that the applicant was not entitled to apply for declaration forms post-cancellation. The Tribunal analyzed the purpose of the rules, emphasizing that the objective was to allow concessional tax rates for registered dealers purchasing raw materials for manufacturing activities. They held that a registered dealer, even after cancellation of the certificate, could be entitled to declaration forms for purchases made before cancellation, as per rules 27AA and 27A(4).

The Tribunal rejected the argument that issuance of declaration forms and assessment were separate proceedings, highlighting that the applicant had been treated as a registered dealer for assessment purposes for the relevant periods. The Tribunal emphasized that the applicant had fulfilled tax obligations and that refusal to issue declaration forms would be unjustified. Consequently, the Tribunal allowed the application, setting aside the orders of the lower authorities. They directed the Commercial Tax Officer to reconsider the application, treating the applicant as a registered dealer for purchases made until the date of cancellation. The Commercial Tax Officer was instructed to provide a reasoned order within six weeks, considering all necessary documents and evidence presented by the applicant. The judgment concluded without any order for costs, disposing of the application in favor of the applicant.