2020 (7) TMI 797 - HC - VAT and Sales Tax

Validity of assessment order - seeking time for filing of C-Forms in order to avail concessional rate of tax on inter-State sales - HELD THAT - The matter is remitted back to the 1st respondent for fresh consideration; the petitioner is granted six weeks time from the date of receipt of a copy of this order to submit relevant documents and file objections to the show-cause notices. Petition allowed by way of remand.

Summary

Issues:
Assessment Order under CST Act, 1956 challenged for the period 2015-16 due to non-submission of statutory forms; Request for adjournment due to COVID-19 pandemic ignored by the 1st respondent; Denial of personal hearing and adequate time to produce documents defended by the petitioner.

Analysis:
The petitioner, a registered dealer, challenged the Assessment Order dated 31.03.2020 under the CST Act, 1956 for the period 2015-16 issued by the 1st respondent. The dispute arose as the 1st respondent proposed to levy tax on the petitioner for not submitting statutory C and F Forms, leading to disallowance of branch transfers and inter-State sales. The petitioner claimed to have submitted the relevant F Form along with a covering letter on 11.12.2017 but faced challenges with the C-Forms, stating they were not received from customers, hence not filed. Despite the petitioner's efforts to respond to notices and seek time for submitting C-Forms to avail concessional tax rates, the 1st respondent proceeded with the assessment without considering the petitioner's request for adjournment.

The petitioner argued that the COVID-19 pandemic hindered their ability to respond promptly as the web portal was inaccessible, and travel restrictions prevented accessing necessary documents located in different places. The petitioner's counsel contended that the 1st respondent's refusal to grant an adjournment and a personal hearing was unreasonable, especially considering the exceptional circumstances. In response, the Special Counsel for Commercial Taxes acknowledged the petitioner's difficulties and assured a reconsideration of the issue by the 1st respondent.

Consequently, the High Court allowed the Writ Petition, setting aside the impugned Assessment Order and remitting the matter back to the 1st respondent for fresh consideration. The petitioner was granted six weeks to submit relevant documents and objections to the show-cause notices, with the provision of a personal hearing. The 1st respondent was directed to pass a reasoned order within three months of receiving the petitioner's submissions, ensuring compliance with the law. The Court closed any pending miscellaneous petitions in the matter and awarded no costs in this regard.