2013 (5) TMI 771 - HC - VAT and Sales Tax

Summary

Issues involved:
1. Opportunity to produce Declaration Form D-1
2. Validity of charging differential tax based on form C-3
3. Admissibility of declaration form D-1 for concessional tax rate

Opportunity to produce Declaration Form D-1:
The appellant dealer, in this case, sought the opportunity to produce Declaration Form D-1, which was not granted initially. The appellant had submitted the form during the proceedings, but it was deemed inadmissible as evidence. The key question was whether the appellant should have been allowed to present this declaration form to claim a concessional tax rate. The court referred to a previous case and directed the Assessing Authority to reassess the genuineness of the documents, emphasizing that if found fabricated, penalties could be imposed as per the law.

Validity of charging differential tax based on form C-3:
The appellant dealer had charged 4% tax from the Haryana State Electricity Board based on form C-3, but the assessing authority levied 12.5% tax for the assessment year 2005-06, resulting in a significant demand and interest. Despite the Nigam being controlled by the government, it was held that they were not a government department authorized to issue form C-3. This discrepancy led to the question of whether the appellant could claim the concessional rate of tax by producing declaration form D-1, considering the Nigam's status.

Admissibility of declaration form D-1 for concessional tax rate:
The court set aside previous orders and remitted the matter back to the Assessing Authority to consider the declaration form D-1. Relying on the precedent set in a specific case, the court directed the Authority to decide the matter afresh, favoring the dealer and against the Department. This decision highlighted the importance of assessing the validity of documents presented by the dealer to determine the appropriate tax rate.