1992 (9) TMI 351 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of C forms for concessional tax rate under Central Sales Tax Act.
2. Interpretation of rules regarding declaration forms for inter-State sales.
3. Compliance with prescribed procedures for availing concessional tax rate.

Issue 1: Validity of C forms for concessional tax rate under Central Sales Tax Act

The case involved a dispute regarding the validity of C forms submitted by the assessee to claim a concessional tax rate under the Central Sales Tax Act. The assessing authority rejected the C forms for a turnover of Rs. 1,45,680.31, subjecting it to a higher tax rate of 10%. The Appellate Assistant Commissioner, however, deemed the C forms to be in order and allowed the concessional rate of 4%. The Tribunal, disagreeing with the Appellate Assistant Commissioner, upheld the assessing authority's decision, stating that the C forms were not supported by valid declarations. The assessing authority's reasoning included the requirement for C forms to be filled by purchasing dealers, as per the prescribed particulars, and cited relevant case law emphasizing strict compliance with declaration rules.

Issue 2: Interpretation of rules regarding declaration forms for inter-State sales

The assessing authority's decision was based on the fact that the C forms were filled by the selling dealers, not the purchasing dealers as required by law. The authority also highlighted the necessity for verification by purchasing dealers and the importance of including specific details like bill numbers and amounts. Case law, including judgments from the Supreme Court, was cited to support the requirement for strict adherence to the prescribed form of declarations for availing concessional tax rates.

Issue 3: Compliance with prescribed procedures for availing concessional tax rate

The Tribunal reiterated the assessing authority's reasoning and emphasized that the C forms were issued by buyers before the actual sale took place, which rendered them invalid as per the law. Despite arguments for substantial compliance through certificates from purchasing dealers, the Tribunal held that strict adherence to the declaration rules was necessary to claim the concessional tax rate. The Tribunal also referenced additional case law to support its decision, emphasizing the importance of following prescribed procedures for claiming concessional rates. Ultimately, the revision petition was dismissed, and no costs were awarded in the case.