2016 (1) TMI 467 - HC - VAT and Sales Tax

Eligibility for exemption subject to the proof of certificate - concessional rate of tax - Held that - Yet another opportunity may be given to the petitioner with respect to the claim of production of declaration forms alone, this Court is inclined to grant sufficient time to the petitioner for production of C forms. - by quashing the impugned orders dated 07.09.2015, this Court permits the petitioner to file C declaration forms before the respondent within a period of two weeks from the date of receipt of a copy of this order and on such production, the respondent is directed to consider the same and pass orders on merits and in accordance with law, within a period of four weeks thereafter. - Petition disposed of.

Summary

Issues:
Challenge to orders disallowing exemption and concessional tax rates for inter-state sales; Violation of principles of natural justice in assessment process; Non-compliance with Rule 12(7) of CST (R&T) Rules; Opportunity for petitioner to produce C Forms.

Analysis:
The petitioner, a registered dealer in Sago and Starch, challenged orders disallowing exemption and concessional tax rates for inter-state sales, specifically those from M/s Sago Serve, Salem. The respondent initiated proceedings without calling for necessary documents, leading to grievances regarding lack of time for submission. The petitioner argued a violation of natural justice principles, emphasizing the need for a fair hearing before confirming proposals. Additionally, the petitioner highlighted Rule 12(7) of CST (R&T) Rules, stating the respondent's failure to consider declarations filed after the prescribed period, indicating non-compliance.

The petitioner contended that sufficient time was not granted for producing necessary documents, leading to the issuance of impugned orders. The learned counsel argued that given the opportunity, the petitioner could have provided the required declarations, potentially avoiding the tax demands. On the other hand, the respondent claimed to have provided adequate opportunities but cited the petitioner's failure to produce C Forms as a hindrance.

Upon hearing both sides, the Court acknowledged the need to grant the petitioner an additional opportunity to produce C declaration forms. Consequently, the Court quashed the impugned orders and allowed the petitioner two weeks to file the necessary forms. The respondent was directed to consider the forms and make decisions based on merit and legal provisions within four weeks thereafter. The writ petitions were disposed of without costs, bringing the matter to a close.