2014 (1) TMI 1513 - HC - VAT and Sales Tax

Rejection of application for issuance of Form-C - Held that - Moreover, since the supply of form depends on the discretion of the Sales-tax Officer, guided by the genuine requirement of a dealer, we cannot compel the Sales-tax Officer to issue forms to the petitioner which in the opinion of the Sales-tax Officer are not genuinely required by him. Moreover, the petitioner has an alternative remedy by way of appeal in case he is not satisfied with the order of the Sales-tax Officer with regard to the number of forms to which he is entitled. If the petitioner can satisfy the appellate authority that his genuine need for the forms is greater than sanctioned by the Sales-tax Officer and also that the forms previously issued to him had been properly accounted for, the Appellate Authority can give him the necessary relief. proper course for the petitioner is to approach the Appellate Authority. We make it clear that in the meantime, if the petitioner bona fide utilises the forms already issued to him and if he genuinely needs more forms, he can make a demand from the Sales-tax Officer - petitioner s application for issuance of Form-C has been rejected. The petitioner was issued a show cause dated 11.04.2011, as to why its application for issuance of Form-C be not rejected. The petitioner submitted its reply on 11.04.2017, to the show cause notice, and rushed to the Court by filing the instant writ petition on 13.04.2011. The Assistant Commissioner, Commercial Tax, Sector-5, Sonbhadra - respondent no.2, has not taken any decision on the petitioner s reply so far - writ petition is premature as the Authority has not given any reason , on which the court may adjudicate the rights of the petitioner - Decided against assessee.

Summary

Issues:
1. Registration under U.P. Value Added Tax Act and Central Sales Tax Act.
2. Issuance of Form-C for import of goods.
3. Cancellation of registration certificate under Central Sales Tax Act.
4. Application for Form-C and subsequent show cause notice.
5. Legal entitlement to import machinery on Form-C for resale.
6. Prematurity of the writ petition.

Analysis:
1. The petitioner, a Private Limited Company, subcontracted work for excavation of coal mines. It obtained registration under the U.P. Value Added Tax Act and Central Sales Tax Act for the goods required in mining activities.

2. The petitioner applied for issuance of Form-C for import of goods but faced delays and a show cause notice from the authorities questioning the resale of machinery parts after the contract period. The petitioner responded, affirming resale post-work completion.

3. The registration certificate under the Central Sales Tax Act was canceled by the authorities alleging non-fulfillment of conditions. The petitioner appealed, and the appellate authority allowed the appeal, granting permission for specific purchases and use of Form-C.

4. Despite subsequent applications for Form-C, the authorities issued a show cause notice challenging the resale aspect of imported goods. The petitioner clarified its position, leading to the filing of a writ petition.

5. The petitioner argued entitlement to import machinery on Form-C for resale after work completion, citing Rule 8(3)(d) of the Central Sales Tax Rules 1957. Legal precedents were referred to support the contention.

6. The Court noted the premature nature of the writ petition as the authorities had not made a final decision on the application for Form-C. The Court directed the Assistant Commissioner to decide on the Form-C issuance within two weeks from the date of the order.

This detailed analysis covers the issues related to registration, Form-C issuance, cancellation of registration, challenges faced by the petitioner, legal entitlement arguments, and the premature nature of the writ petition, culminating in the Court's directive for a timely decision by the tax authority.