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2011 (4) TMI 1237 - HC - VAT and Sales Tax
Issues:
Claim of exemption as "sales for export" under section 5(3) of the Central Sales Tax Act, 1956 based on submission of H forms for entire year vs. quarterly periods. Analysis: The petitioner, a firm engaged in mining and selling iron ore, claimed exemption as "sales for export" under section 5(3) of the Central Sales Tax Act, 1956. They supplied iron ore to an exporter and submitted H forms, as required under section 5(4) of the Act, covering the entire year. The assessing officer treated the sales as local due to the H form being for the entire year. The second respondent initiated revisional proceedings, proposing to withdraw the exemption as quarterly H forms were not submitted. The petitioner submitted their explanation and quarterly H forms, but the second respondent declined to accept the quarterly forms. The petitioner appealed under section 33 of the Andhra Pradesh Value Added Tax Act, 2005, which were dismissed by the Sales Tax Appellate Tribunal as not maintainable, leading to the petition before the High Court. The crux of the issue lies in interpreting Rule 12(10)(a) of the Central Sales Tax (Registration and Turnover) Rules, 1957. This rule mandates a dealer to file a declaration in form H signed by the exporter up to the time of assessment. The question arises whether the rule requires declarations in form H for each transaction or quarterly periods. The High Court held that the rule does not explicitly require quarterly filings and must be read in a workable manner. Requiring quarterly filings could potentially disrupt contracts between dealers and exporters. Thus, the court set aside the second respondent's decision and directed a reconsideration, taking into account all materials filed by the petitioner, including declarations in H forms for quarterly periods. In conclusion, the High Court set aside the impugned endorsements, directing the second respondent to reconsider the revision with all materials, including quarterly H forms. The petitioner's writ petitions were disposed of accordingly, with no order as to costs.
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