1997 (9) TMI 575 - HC - VAT and Sales Tax

Summary

Issues involved: The legality of notice issued by Assistant Commercial Tax Officer, denial of C form request, entitlement to supply of "C" form declaration, compliance with relevant provisions of Central Sales Tax Act and Andhra Pradesh General Sales Tax Act.

Denial of C form request: The petitioner, a registered dealer under the Central Sales Tax Act and Andhra Pradesh General Sales Tax Act, entered into a contract for supply of gas/steam turbines. The petitioner sought to issue C form for purchases made from suppliers outside the State of Andhra Pradesh, claiming exemption under section 6(2) of the CST Act. The Assistant Commercial Tax Officer did not respond to the request, leading to the filing of W.P. No. 18662 of 1997. Subsequently, a notice was issued by the Commercial Tax Officer stating conditions for issuing the C form, which was challenged in Writ Petition No. 18682 of 1997.

Contentions and arguments: The petitioner contended that they are entitled to receive the C form under the CST Act and Rules, emphasizing that the transaction with the contractor should not attract tax liability. On the other hand, the Government Pleader argued that the transaction was a scheme to evade tax, asserting that the petitioner is not entitled to the C form declaration.

Legal analysis and decision: The Court examined the relevant provisions of the Central Sales Tax Act and Andhra Pradesh General Sales Tax Act. It was observed that the authorities are not required to conduct an inquiry into the nature of the transaction at the stage of issuing the C form. The Court held that the petitioner is entitled to receive the C form upon satisfying specific conditions, without prejudice to further inquiries during assessment. Consequently, Writ Petition No. 18682 of 1997 was allowed, while Writ Petition No. 18662 of 1997 was dismissed, directing the petitioner to file an explanation to the show cause notice.

Conclusion: The Court allowed one writ petition and dismissed the other, specifying the actions to be taken by the petitioner in response to the show cause notice. The decision emphasized the entitlement of the petitioner to receive the C form upon fulfilling the necessary conditions, highlighting the procedural aspects of issuing the declaration form.