1998 (7) TMI 668 - HC - VAT and Sales Tax

Summary

Issues:
Claim of concessional rate of tax on inter-State sales, Rejection of claim due to non-submission of C and D forms, Appeal before Deputy Commissioner (Appeals), Second appeal before Sales Tax Appellate Tribunal, Revision case before High Court for uncovered turnover, Delay in procuring C and D forms, Request for remand to assessing authority for verification.

Analysis:
The petitioner, a cement manufacturing company, claimed a concessional rate of tax for inter-State sales but faced rejection for not submitting C and D forms for a specific turnover amount. The Deputy Commissioner (Appeals) partially accepted the claim after receiving some forms but remanded the remaining amount for verification. The petitioner then appealed to the Sales Tax Appellate Tribunal for the outstanding sum, requesting more time to obtain necessary forms. The Tribunal accepted a portion of the turnover based on available forms and directed verification for the rest. Subsequently, the petitioner approached the High Court through a revision case for the remaining uncovered turnover, citing inadequate time given to procure forms causing financial loss. The petitioner managed to obtain some forms and requested a remand to the assessing authority for verification. The High Court, after considering submissions from both sides, directed the assessing authority to examine the claim based on the available C and D forms, granting relief for the covered turnover amount if found genuine.

This judgment highlights the importance of timely submission of required forms for claiming tax concessions on inter-State sales. It underscores the procedural aspects involved in verifying such claims and the need for cooperation between the taxpayer and tax authorities. The High Court's decision to allow verification based on the forms provided by the petitioner demonstrates a balanced approach to resolving the issue at hand. The case also emphasizes the significance of due diligence in fulfilling documentation requirements to avail of tax benefits and the consequences of delays in the process.