2016 (5) TMI 1339 - HC - VAT and Sales Tax

Amendment in the certificate of registration - Section 8(3) of the Central Sales Tax (Registration and Turn over) Rules, 1957 - Because of partial inadvertence and due to partial miscommunication and due to partial error in Clause (c) of the aforesaid certificate of registration issued under the Central Sales (Registration and Turnover) Rules, 1957, the capital goods were not mentioned and this is blank in the said certificate of registration - Counsel for the State submitted that the amendment which is in the certificate of registration cannot be granted with retrospective effect. Held that - it transpires that there were capital goods at the mining place of this petitioner. The said inspection report is dated 11.07.2013. This inspection report is a part of Annexure-5 to the memo of this writ petition. Thus, the capital goods were not only purchased from April 2011, but, there were invoices also. Thus, there are valid documents for the capital goods purchased by the petitioner and there is also a verification report of these facts by the Inspecting Team of the respondents-State. Thus, we have no reason to disbelieve the purchase of capital goods, which have been purchased by him. The date of invoices, invoice No., value of invoice with the name of the parties from whom the goods were purchased and address from where goods were purchased have also been mentioned. The petitioner has purchased the capital goods for the mining purposes and these goods are mentioned with invoices, number of invoices, value of invoices, name and address of the parties from whom capital goods are purchased and no fraud was played by this petitioner. The State of Jharkhand could not point out that this petitioner is evading the tax nor there is any allegation by the State of Jharkhand upon the petitioner that the capital goods were never purchased. Once capital goods are purchased for mining purposes and there is a provision of amendment in the certificate of registration under Section 25(4) of the Jharkhand Valued Added Tax Act, 2005 to be read with Rules 7 and 12 of the Central Sales (Registration & Turnover) Rules, 1957, we hereby, direct the respondents to carry out that amendment and capital goods as mentioned herein above shall be included in the certificate of registration with retrospective effect from 21.4.2011 and we hereby, quash and set aside the impugned order. Petition allowed - decided in favor of petitioner.

Summary

Issues Involved:
1. Challenge to the order passed by the Deputy Commissioner, Commercial Taxes, East Circle, Ranchi.
2. Challenge to the order passed by the Joint Commissioner of Commercial Taxes (Administration), Ranchi Division, Ranchi.
3. Retrospective amendment of the certificate of registration under the Central Sales Tax Act, 1956.
4. Validity of the purchase of capital goods for mining purposes.
5. Compliance with procedural requirements for filing revised returns.

Issue-wise Detailed Analysis:

1. Challenge to the order passed by the Deputy Commissioner, Commercial Taxes, East Circle, Ranchi:
The petitioner challenged the order dated 03.09.2013, passed under Section 25(4) of the Jharkhand Value Added Tax Act, 2005, read with Rule 12 of the Central Sales (Registration and Turnover) Rules, 1957. The Deputy Commissioner had denied the amendment sought by the petitioner in the certificate of registration issued under the Central Sales Tax (Registration and Turnover) Rules, 1957, specifically under Section 8(3).

2. Challenge to the order passed by the Joint Commissioner of Commercial Taxes (Administration), Ranchi Division, Ranchi:
The petitioner also contested the order dated 10.10.2013, which similarly denied the amendment in the certificate of registration. The petitioner argued that the capital goods necessary for mining were inadvertently omitted from the certificate and should be included.

3. Retrospective amendment of the certificate of registration under the Central Sales Tax Act, 1956:
The petitioner sought retrospective amendment of the certificate of registration to include capital goods used for mining. The court noted that the petitioner had already purchased these goods and paid the requisite taxes. It was argued that no financial loss would be caused to the State of Jharkhand if the amendment was granted retrospectively. The court found that retrospective amendment is permissible under Section 25(4) of the Jharkhand Value Added Tax Act, 2005, read with Rule 12 of the Central Sales (Registration and Turnover) Rules, 1957.

4. Validity of the purchase of capital goods for mining purposes:
The petitioner provided evidence of the purchase of capital goods through invoices and inspection reports. The court noted that the capital goods were indeed purchased and used for mining activities, as verified by the Commercial Taxes Department. The State did not contest the purchase of these goods. The court found no reason to disbelieve the petitioner's claim and noted the absence of any fraud or tax evasion.

5. Compliance with procedural requirements for filing revised returns:
The court examined the procedural timeline for filing revised returns and found that the petitioner had complied with the requirements. The petitioner filed revised returns on 05.05.2013, which included the inter-state purchase of capital goods. The court noted that the petitioner had filed the amendment application within a reasonable timeframe and that both the Deputy Commissioner and Joint Commissioner had failed to properly appreciate this aspect.

Judgment:
The court directed the respondents to amend the certificate of registration to include the capital goods with retrospective effect from 21.04.2011. The impugned orders dated 03.09.2013 and 10.10.2013 were quashed and set aside. The court emphasized that there was no loss of revenue to the State of Jharkhand due to this amendment. The petitioner was instructed to issue Form-C certificates and comply with the tax requirements. The writ petition was allowed and disposed of, with the necessary amendments to be carried out within four weeks from the date of the order.