2007 (7) TMI 614 - HC - VAT and Sales Tax

Bogus C forms - Held that - Verification of the C forms revealed that the seal said to have been affixed by the officials was found to be irrelevant as it contained the words Commercial Sales Tax Office only without mentioning the station of the assessing officer and it was proposed to disallow the exemption sought for by the petitioner. He further submitted that the C forms were submitted only by the petitioner and not recovered from any third party or from other dealer. Therefore the issue of verifying the source for obtaining the xerox copy of C forms does not arise and hence the prayer in the writ petition is not maintainable. In the present case C forms were actually produced by the petitioner and they are not recovered or obtained from any other person. Therefore when the petitioner themselves are the source of the documents there is no need to summon any third party so as to enable the petitioner to cross-examine them. Thus the request of the petitioner to invoke section 54A of the TNGST Act insofar as the C forms mentioned in the show-cause notice dated April 18 2007 is concerned it is not maintainable.

Summary

Issues:
1. Validity of C forms submitted by the petitioner.
2. Allegation of bogus C forms by the assessing officer.
3. Jurisdiction to reject statutory C forms.
4. Invocation of powers under section 54A of the TNGST Act for verification.

Detailed Analysis:
The petitioner, a cotton yarn manufacturer, reported a total turnover and taxable turnover in an assessment order. The petitioner filed C forms for inter-State sales at a concessional rate, with exemption on consignment sales. However, during an inspection, enforcement officials found discrepancies in the C forms submitted by the petitioner, leading to suspicion of their authenticity. The assessing officer deemed certain C forms as bogus due to inconsistencies in the details provided. Consequently, a show-cause notice was issued proposing a higher tax rate and a penalty under relevant tax laws.

The petitioner requested disclosure of sources for xerox copies of C forms and cross-examination of relevant parties to establish the genuineness of the forms. The petitioner sought mandamus to invoke powers under section 54A of the TNGST Act for the turnover related to the disputed C forms. The petitioner argued that the assessing officer should gather further information to determine the validity of the C forms, especially when the petitioner had provided evidence such as gate passes and invoices to support their transactions.

The Additional Government Pleader contended that the C forms were submitted solely by the petitioner and not obtained from third parties. Therefore, the issue of verifying the source of the forms did not arise. The court examined section 54A of the TNGST Act, which allows authorities to request information for proceedings under the Act. Since the petitioner themselves were the source of the C forms, there was no necessity to summon third parties for cross-examination.

Ultimately, the court dismissed the writ petition, stating that the request to invoke section 54A of the TNGST Act regarding the disputed C forms was not maintainable. The court found no grounds to support the petitioner's claim for further verification through cross-examination of third parties. The judgment concluded without imposing any costs on the parties involved, closing the related miscellaneous petition as well.