2017 (7) TMI 1065 - HC - VAT and Sales Tax

Levy of purchase tax - wheat - non-filing of form III-C-1 - Section 3-D sub Section 7 of U.P. Sales Tax Act 1948 - Held that - It is admitted that Form III-C-1 was not submitted by revisionist and therefore liability of tax has been levied upon Assessee - In absence of Form III-C Revenue has right to levy tax upon revisionist - revision dismissed - decided against assessee.

Summary

Issues: Liability of purchase tax on wheat purchase without Form III-C-1

Analysis:
1. Issue: Liability of purchase tax on wheat purchase without Form III-C-1
- Summary: The main issue in this case was whether the applicant was liable to pay purchase tax on the purchase of wheat without submitting Form III-C-1, even though the Food Corporation of India had already paid the tax as the first purchaser.
- Judgment: The court noted that the applicant did not submit Form III-C-1, leading to the imposition of tax liability. Section 3-D sub Section 7 of the U.P. Sales Tax Act, 1948, states that every purchase within Uttar Pradesh shall be deemed the first purchase unless proven otherwise with the required documentation.
- Conclusion: As Form III-C was not submitted, the Revenue was justified in levying the tax on the revisionist. The court ruled against the Assessee, resulting in the dismissal of the revision.

This judgment clarifies the importance of complying with documentation requirements under the Sales Tax Act to avoid tax liabilities. The court upheld the Revenue's right to levy taxes in the absence of necessary forms, emphasizing the need for dealers to fulfill prescribed formalities to establish their tax liabilities. The decision underscores the significance of adhering to statutory provisions to prevent tax disputes and ensure proper tax compliance.