2013 (3) TMI 40 - HC - VAT and Sales Tax

Liability fastened on account of the absence of C-Forms - stay on condition that the petitioner will remit 10% of the disputed tax and interest - Held that - Petitioner having produced copies of the C- Forms before the Appellate Authority when the stay petition was heard the appellate authority should have at least prima facie verified that contention. Set aside orders of conditional stay and direct the appellate authority to examine whether the C-Forms produced by the petitioner before it are sufficient to wipe off the liability - in favour of assessee by way of remand.

Summary

Issues:
Challenge to conditional order for stay on tax liability due to absence of C-Forms.

Analysis:
The petitioner challenged Ext.P6, a conditional order passed by the appellate authority, which granted a stay on the condition that the petitioner remit 10% of the disputed tax and interest. The order of assessment, Ext.P1, was passed against the petitioner, primarily due to the absence of C-Forms that should have been provided by the petitioner. The petitioner argued that the assessment was completed without considering his request for the production of C-Forms, resulting in the liability being imposed.

The petitioner filed an appeal, Ext.P2, along with a stay petition, Ext.P4. During the hearing of the stay petition, the petitioner submitted copies of the relevant C-Forms, contending that if these forms were considered by the appellate authority, there would be no liability justifying the conditional order. The judge noted that since the petitioner had submitted the C-Forms and claimed that they would eliminate the liability, the appellate authority should have at least prima facie verified this contention.

As the appellate authority did not examine the petitioner's argument regarding the sufficiency of the C-Forms in Ext.P6, the judge set aside the order and directed the appellate authority to assess whether the C-Forms provided by the petitioner were enough to discharge the liability. Based on this assessment, the appellate authority was instructed to issue a fresh order in the case or proceed to pass new orders in the appeal. The writ petition was disposed of with the petitioner being required to provide a copy of the judgment and the writ petition to the relevant authority for compliance.