2015 (8) TMI 301 - HC - VAT and Sales Tax

Challenge to assessment order - petitioner had failed to furnish F forms - Held that - There is ample power for the authority to grant extension of time. In the instant case, we find that there is justification for the authority to invoke the powers under the proviso to Rule 12(7) for the reason that the petitioner had to obtain the F forms from Bihar State. - petitioner has an effective remedy by way of filing appeal as against the assessment order. We are not inclined to direct the petitioner to pursue the appeal remedy, as the reason given by the petitioner appears to be bona fide and the assessee in this case, at the first instance, has submitted original C and F declaration forms on receipt of the notice. He also sought time for seeking rectification of the F forms and has justified the reasons for the said non-submission. Therefore, there is every justification for the Writ Petitioner to seek indulgence of this Court to quash the impugned order, which has been passed without considering the sufficient cause shown by the assessee, which has caused prejudice only on account of delay in uploading the relevant declarations. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
1. Quashing of assessment order for failure to furnish 'F' forms
2. Seeking direction for re-submission of rectified 'F' forms and balance 'F' forms

Analysis:
The petitioner, a registered dealer trading medical equipment, challenged an assessment order demanding tax due for failure to furnish 'F' forms. The petitioner operated from a warehouse in Pondicherry with inter-state sales, stock transfers, and sought extension to submit necessary forms. Despite submitting some forms, an extension was requested for pending 'F' forms from Bihar due to technical issues. The authority declined the extension, leading to the impugned order.

The Court considered the authority's power to grant time extensions under Rule 12(7) of the Central Sales Tax Act. The proviso allows extensions for sufficient cause shown, which the petitioner demonstrated by justifying the delay in obtaining 'F' forms from Bihar. The Court noted the petitioner's bona fide actions, including submitting original 'C and F' forms promptly and seeking rectification for the delay, warranting the quashing of the impugned order.

The Court set aside the impugned order, remanding the matter for fresh assessment. The petitioner was directed to produce all required declaration forms within 15 days for the assessment year in question. The Assessing Officer was instructed to proceed with the assessment upon receiving the physical declarations, ensuring a fair assessment process. The Court allowed the writ petition, emphasizing the authority's duty to consider sufficient cause shown by the assessee before passing orders.