2014 (8) TMI 335 - HC - VAT and Sales Tax

Central Sales - C Form - Assessment order passed without considering that declaration C is already filed - Held that - The fact remains that the petitioner has produced the C forms pertaining to the assessment year 2007-08 and the same has not been produced for the assessment year 2008-09. The further fact remains that if the petitioner is given an opportunity to produce the Declaration Form in Form-C and also if its reply dated 19.05.2014 is considered, then, they will be able to substantiate their claim that they are not liable to pay any tax - as the Declaration Form in Form-C is now readily available with the petitioner and also the contention of the petitioner that if the same is allowed to be produced before the respondent, then, they will be able to substantiate that they are not liable to pay any tax at all and also the fact that the assessee can be permitted to produce the Declaration Form in Form-C, within five years from the assessment year, with sufficient reasons, I am inclined to set aside the impugned assessment orders and the matter is remitted back to the respondent only to the limited extent to decide the matter afresh after taking into consideration the reply of the petitioner dated 19.05.2014 along with Form-C, if it is within time - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Challenge to assessment orders for the years 2007-08 and 2008-09, failure to produce "C" declaration forms, disallowance of exemption for export sales, request for fresh assessment orders.

Analysis:
The petitioner filed writ petitions to challenge the assessment orders for the years 2007-08 and 2008-09, seeking to quash the proceedings and obtain fresh assessment orders. The petitioner contended that the respondent had issued the impugned orders without verifying the submission of "C" declaration forms. The petitioner claimed they were asked to provide proof for filing the forms and requested additional time, which was not considered before the orders were issued. Additionally, the respondent disallowed exemption for export sales, stating lack of documentary evidence. The petitioner expressed willingness to present all necessary documents if given the opportunity.

The respondent, represented by the Additional Government Pleader, acknowledged that the "C" declaration forms were submitted for the assessment year 2007-08 but not for 2008-09. It was suggested that if the petitioner provided the required documents as directed, the respondent would reconsider the assessment for both years. After considering the submissions, the court noted that the petitioner had indeed submitted the "C" forms for 2007-08 but not for 2008-09. The court recognized that if given the chance to produce the forms and present their reply dated 19.05.2014, the petitioner could establish their tax exemption claim.

Consequently, the court decided to set aside the impugned assessment orders and remit the matter back to the respondent for fresh consideration. The petitioner was directed to submit the necessary documents promptly, cooperate with any further requirements, and attend the inquiry as scheduled. The respondent was instructed to review the case, consider the petitioner's reply, and issue new orders promptly and in compliance with the law. The court emphasized expeditious resolution and closed the related Miscellaneous Petitions without costs.