2001 (7) TMI 1247 - HC - VAT and Sales Tax

Summary

Issues Involved:
Power of first appellate authority to receive "C" declaration forms in appeal and grant relief.

Detailed Analysis:

1. Background and Facts:
The petitioner, a Government of India concern, appealed against an assessment order issued by the Sales Tax Officer. The petitioner applied for adjournments and failed to produce necessary accounts and supporting documents, leading to an ex parte assessment. In the subsequent appeals, the issue arose regarding the acceptance of "C" declaration forms at the appellate stage.

2. Legal Provisions and Contention:
The contention revolved around rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, which seemingly prohibited the reception of "C" declaration forms at the first appellate stage. However, the Sales Tax Tribunal had the authority to receive additional evidence, including "C" declaration forms, as per rule 61 of the Orissa Sales Tax Rules, 1947.

3. Analysis of Appellate Provisions:
The powers of the first appellate authority under Section 23 of the Orissa Sales Tax Act were discussed, highlighting the authority's wide discretion to confirm, annul, or set aside assessments, and direct further inquiries. The absence of limitations on the exercise of such powers indicated that the first appellate authority could entertain requests like considering "C" declaration forms.

4. Precedent and Judicial Interpretation:
Reference was made to a Karnataka High Court case and a previous Orissa High Court case, emphasizing that the appellate authority could accept "C" forms if sufficient cause was shown for their non-production before the assessing authority. The principle of liberal attitude towards accepting declaration forms was underscored, especially when the assessee provided a plausible explanation.

5. Decision and Order:
The High Court held that the first appellate authority erred in law by refusing to receive the "C" declaration forms submitted by the petitioner. The orders of the Sales Tax Tribunal and the Assistant Commissioner were quashed, and the matter was remitted to the Assistant Commissioner to consider the circumstances justifying the non-production of the forms. If satisfied, the Assistant Commissioner was directed to accept the forms and pass an appropriate order according to law.

6. Final Judgment:
The revision was allowed, with both judges concurring on the decision. The petition was allowed, emphasizing the importance of considering the circumstances and justifications for the late submission of "C" declaration forms in the appellate process.