2015 (3) TMI 1222 - HC - VAT and Sales Tax

Prayer for extension of time to furnish the declaration forms - Forms C and Forms F not furnished, as the authorities having jurisdiction over the case of the petitioner and its branches situate out of the State of Bihar, other forms duly submitted - whether the petitioner is justified in seeking for extension of time limit to submit Forms C and Forms F ? - Held that - considering the failure to produce the Forms C and F on account of the inaction of the authorities of other States and further considering the fact that the matter was not time barred, the respondent assessing authority ought to have granted time to the petitioner to produce the necessary forms or in the alternative examine the relevant documents of the petitioner to come to the conclusion as to whether the transactions were in the nature of inter-State transactions covered by the Central Sales Tax Act or not before passing the impugned order. The demand order set aside and the petitioner given an opportunity to satisfy the respondent authorities by producing the necessary forms in the matter - petition disposed off - matter remanded - decided in favor of petitioner.

Summary

Issues involved:
Quashing of assessment order under Central Sales Tax Act due to non-production of Forms 'C' and 'F' leading to unjustified demand.

Analysis:
The petitioner sought the quashing of an order passed by the Commercial Taxes Officer, Patliputra Circle, Patna, dated 27.12.2014, raising a total demand of Rs. 31,38,764.22, as the Forms 'C' and 'F' were not produced due to the inaction of Sales Tax Authorities of another State. The petitioner argued that they were willing to furnish the remaining forms within two weeks. The State's counsel contended that the petitioner did not cooperate and failed to produce the required forms, leading to the order being passed. The Court noted the failure to produce the forms due to the inaction of other State authorities and the non-time-barred nature of the matter. It held that the assessing authority should have granted time to produce the necessary forms or examine relevant documents before passing the order. Consequently, the order dated 27.12.2014 was set aside, and the petitioner was given an opportunity to present the required forms for fresh consideration by the Assessing Authority.

The Court's decision was based on the petitioner's inability to produce Forms 'C' and 'F' due to the inaction of authorities from another State and the non-time-barred nature of the issue. Citing the case of Ambica Steels Ltd. vs. State of U.P. & Ors., the Court emphasized the need for the assessing authority to allow time for submission of necessary forms or examine relevant documents to determine if the transactions fell under the Central Sales Tax Act. The Court directed the matter to be remanded before the Assessing Authority for fresh consideration in accordance with the law, requiring the petitioner to appear with the necessary forms and evidence on a specified date for a reevaluation of the case.

In conclusion, the Court allowed the writ application, quashed the impugned order, and instructed the Assessing Authority to reconsider the matter after reviewing the forms and documents to be submitted by the petitioner. The petitioner was directed to appear before the Assessing Authority on a specific date with the required forms and evidence for a fresh decision in compliance with the law.