2016 (1) TMI 673 - HC - VAT and Sales Tax

Non production of C Form / F Form or discrepancies therein - disallowance of concessional rate for non-filing of the relevant statutory forms with regard to Interstate Sale, branch transfer and consignment sale - Held that - While passing orders on the said application, with regard to C form as well as the eligibility of the petitioner under sales return, the respondent without adducing appropriate reasons has stated that the judgment cited in the case is not applicable to the case, since the facts in that case and the case of the petitioner are not similar. Further the defects pointed out by the respondent in the impugned proceedings are nothing, but ineligibility of concessional rate of tax on certain turnover due to defective forms which are to be corrected and counter signed by the authority who issued and the same was done subsequently. So there cannot be any justifiable reason to reject the application under section 84 of TNVAT Act, that too, without any opportunity. Matter is remitted back to the assessing authority/respondent for passing orders afresh.

Summary

Issues:
Challenge to impugned notice in CST No.50802/2007-08 dated 30.09.2015, Rectification petition under Section 84 of TNVAT Act, Denial of concessional rate of tax and exemption, Rejection of rectification petitions, Consideration of revised return, Disallowance of sales return claim, Arbitrary rejection of claims, Legal grounds for rejection, Remittal of matter to assessing authority.

Analysis:

1. The main issue in this case revolves around the challenge to the impugned notice issued by the respondent in CST No.50802/2007-08 dated 30.09.2015. The petitioner sought to quash this notice and direct the respondent to dispose of the rectification petition dated 03.07.2015, while also requesting to restrain any coercive proceedings until the rectification petition is decided.

2. The petitioner, a registered dealer under Tamilnadu Value Added Tax, 2006 and Central Sales Tax Act, faced issues with the respondent regarding concessional rates for non-filing of relevant statutory forms concerning Interstate Sale, branch transfer, and consignment sale. The respondent passed an assessment order denying various claims, leading the petitioner to file rectification petitions under Section 84 of TNVAT Act.

3. The petitioner argued that the respondent failed to consider the revised return submitted by the petitioner before passing the assessment order. Additionally, the disallowance of the sales return claim by the respondent was deemed arbitrary as supporting documents were provided by the petitioner in the form of credit notes.

4. Upon considering the submissions from both sides, the court noted that the errors pointed out by the respondent were related to forms such as 'C' form and form F, along with the lack of supporting documents for the sales return claim. The court found the rejection of the rectification petition without proper reasons to be unjustified and ordered the matter to be remitted back to the assessing authority for fresh consideration.

5. The court directed the petitioner to provide a copy of the revised return along with all documentary evidence and statutory forms within a specified timeframe. The assessing authority was instructed to review each ground raised in the rectification petition, grant a personal hearing to the petitioner, and pass orders based on merits and in accordance with the law within a stipulated period.

6. In conclusion, the court set aside the impugned proceedings under Section 84 of TNVAT Act, remitted the matter for fresh consideration, and provided clear directives for the assessing authority to reevaluate the petitioner's claims in a fair and lawful manner. The writ petition was disposed of with no costs, and connected miscellaneous petitions were closed as a result of the judgment.