2009 (8) TMI 1245 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Rejection of inter-state sales to Haryana Roadways against Form D.
2. Legal sustainability of the Tribunal's order.
3. Denial of concessional tax rate benefit to the applicant company.
4. Justification of rejecting the applicant's claim in absence of Form C (not pressed).

Summary:

Issue A: Rejection of Inter-State Sales to Haryana Roadways Against Form D
The applicant sold goods to Haryana Roadways during the assessment years 1996-97 and 1997-98 and submitted Form D to claim a concessional tax rate u/s 8(1) of the Central Sales Tax Act. The assessing authority doubted whether Haryana Roadways was a State Government department and rejected the claim, which was upheld by the Tribunal. The Tribunal concluded that Haryana Roadways, being a State undertaking, was not authorized to issue Form D.

Issue B: Legal Sustainability of the Tribunal's Order
The applicant argued that the Tribunal's view was illegal, citing certificates from Haryana Roadways officers confirming it as a State Government department. The applicant contended that the genuineness of Form D should not be questioned and that any action should be taken against Haryana Roadways if the form was wrongly issued. The applicant relied on precedents where the genuineness of certificates was upheld, and the selling dealer was not obligated to verify the correctness of the declarations.

Issue C: Denial of Concessional Tax Rate Benefit
The applicant argued that Form D was issued by the Commercial Tax Officer, Haryana, and accepted in good faith. The genuineness of the form was not disputed. The court referred to previous judgments, emphasizing that the selling dealer should not be penalized for accepting genuine forms issued by the purchasing dealer. The court held that the denial of the concessional rate was unjustified and directed the Tribunal to pass an appropriate order.

Conclusion:
The court quashed the Tribunal's order dated 6.10.2006, answered questions A and C in favor of the applicant, and directed the Tribunal to pass an appropriate order u/s 58(4) of the U.P. Value Added Tax Act, thereby allowing the benefit of the concessional tax rate against Form D issued by Haryana Roadways.