2015 (8) TMI 103 - HC - VAT and Sales Tax

Delay in submision of statutory declaration forms - appellant contended that it needed time to obtain the statutory declaration forms from the former company consequent to merger - Held that - Assessing Authority without even giving reply to the request made by the assessee seeking time to produce the declaration forms, whether he is granting time or not, passed the assessment order. For the balance four years, the Assessing Authority granted time to produce the declaration forms. It appears, the petitioner, in terms of proviso to Rule 12(7) of the Central Sales Tax Rules, had shown sufficient cause for not producing the statutory declaration forms at the time of final assessment stating that due to the merger, they were in the process of re-working of the new company; the forms had to be obtained from the former employees of Vista Securities and the persons handling the records left the service. The fact that they have taken all reasonable steps to comply with the requirement of submitting the statutory declaration forms, though belatedly, is evident from the fact that before the first Appellate Authority they had produced the statutory declaration forms, but the same was not accepted by the first appellate authority. But the fact remains that the cause for not submitting the forms at the initial stage is justified in the facts of the present case. There is ample power for the authority to grant extension of time. In the instant case, we find that there is justification for invocation of the powers under the proviso to Rule 12(7). - matters back to the Assessing Authority for passing fresh orders. - Decision in the case of State Of H.P. and others vs Gujarat Ambuja Cement Ltd. 2005 (7) TMI 353 - SUPREME COURT OF INDIA followed - Decided in favour of assessee.

Issues:
Assessment orders based on non-production of statutory declaration forms, sufficiency of cause shown by the assessee, acceptance of belated submission of forms, power of Appellate Authority to receive forms, invocation of Rule 12(7) of Central Sales Tax Rules, precedents on belated filing of statutory forms, remand of matters to Assessing Authority.

Analysis:

1. Assessment Orders based on Non-Production of Statutory Declaration Forms:
The Court highlighted that the Assessing Authority passed assessment orders demanding higher tax rates due to the non-production of necessary statutory declaration forms by the assessee. This action was taken despite the assessee's request for additional time to submit the forms, leading to the dispute.

2. Sufficiency of Cause Shown by the Assessee:
The Court acknowledged the assessee's justification for the delay in submitting the forms, citing the merger with another company as a reason for the re-working process and difficulties in obtaining the required forms. The Court found that the assessee had taken reasonable steps to comply with the requirement, and the delay was justified in the circumstances.

3. Acceptance of Belated Submission of Forms:
Despite the Appellate Assistant Commissioner and the Tribunal rejecting the belated submission of forms by the assessee, the Court found that the assessee had shown sufficient cause for the delay. The Court emphasized that the Appellate Authority has the power to receive such documents and that the assessee's actions were not deliberate avoidance.

4. Power of Appellate Authority to Receive Forms:
The Court referred to legal precedents, such as the case of State of Tamil Nadu v. Arulmurugan and Company, to establish that the Appellate Authority has the power to receive statutory declaration forms even during the appeal process, especially when sufficient cause is shown by the assessee.

5. Invocation of Rule 12(7) of Central Sales Tax Rules:
The Court invoked Rule 12(7) of the Central Sales Tax Rules, emphasizing that the provision allows for the furnishing of declaration forms within further time if sufficient cause is demonstrated. The Court found that the assessee's explanation for the delay was justifiable under this rule.

6. Precedents on Belated Filing of Statutory Forms:
Citing the case of State Of H.P. and others vs Gujarat Ambuja Cement Ltd., the Court highlighted the importance of considering reasonable and sufficient causes for belated filing of statutory forms. The Court emphasized that technicalities should not override the rightful entitlements of the assessee.

7. Remand of Matters to Assessing Authority:
Ultimately, the Court set aside the orders of the Tribunal and remanded the matters back to the Assessing Authority for fresh assessment. The Court directed the Assessing Officer to proceed with the assessment after receiving the necessary statutory declarations, emphasizing the importance of completing the assessment on merits.

In conclusion, the Court allowed the Tax Case Revisions, directing the submission of necessary statutory declaration forms by the petitioners to the Assessing Officer for a fresh assessment without imposing any costs on the petitioners.

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