2013 (2) TMI 643 - HC - VAT and Sales Tax

Summary

Issues involved:
The issue involves seeking direction for issuing a tax clearance certificate for a longer duration to enable the petitioner to transport goods in the course of inter-State trade and commerce.

Summary:
The petitioner, registered under the Assam Value Added Tax Act, 2003 and Central Sales Tax Act, 1956, engaged in the sale and supply of raw jute and oil-cake in inter-State trade, filed monthly returns and paid taxes on time. Despite being in compliance, tax clearance certificates were issued for only 10 to 15 days instead of the permissible four months as per a government circular. The petitioner argued that a longer duration was justified, as per the circular, and the shorter duration caused business difficulties without valid reasons. The State's argument of discretion was found lacking merit. The Court held that a certificate of less than one month could hinder business operations, and there was no prejudice to revenue by issuing certificates for a longer duration. The Court directed that certificates for the petitioner should normally be issued for one month unless specific reasons were provided in writing for a shorter duration. The petition was disposed of.