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2019 (7) TMI 1967 - HC - VAT and Sales TaxValidity of notification dated 13th December 2018 issued by the Commissioner of Value Added Tax (CVAT) under Rule 5 (13) of the Central Sales Tax (Delhi) Rules 2005 - C Form issued by M/s. Mahaveer Traders in favour of the present Petitioner declared obsolete and invalid for all purposes with effect from the date of issuance of such forms. Whether there was any justification for the CVAT in New Delhi to retrospectively declare the C Form which had already been acted upon by the authority in Jammu and Kashmir as obsolete ? HELD THAT - A collective reading of sub-rules 5 (13) and 5 (14) of the CST Delhi Rules makes it clear that once the form that has been issued is utilized the question of subsequently declaring such used forms as obsolete would not arise. Rule 5 (14) makes the requirement of surrender of the unused forms of the series design or colour that have been rendered obsolete clear and provides that only for such unused forms would new forms be issued. It is therefore plain that the rules do not permit the CVAT to declare forms that have already been issued and acted upon as obsolete. The impugned notification 13th December 2018 issued by the CVAT is hereby quashed - Petition allowed.
Issues:
Challenge to notification declaring a form obsolete and invalid. Analysis: The writ petition challenged a notification issued by the Commissioner of Value Added Tax (CVAT) declaring a "C" Form issued by a dealer as obsolete and invalid. The petitioner, a registered dealer under Jammu and Kashmir Value Added Tax (JKVAT) and Central Sales Tax, made an inter-State sale to a dealer in Delhi against the "C" Form. The notification declared the form obsolete retrospectively, even though it had been acted upon by the Jammu and Kashmir authority for tax payment. The key question was the justification for such retrospective declaration. The Court examined Rule 5(13) of the Central Sales Tax (Delhi) Rules, 2005, which allows the Commissioner to declare certain forms as obsolete. However, Rule 5(14) mandates the surrender of unused forms upon such declaration, indicating that forms already utilized cannot be retrospectively declared obsolete. The Court emphasized that once a form has been utilized, it cannot be declared obsolete, and new forms are only issued for unused forms. Therefore, the CVAT did not have the authority to declare forms that had already been acted upon as obsolete. Consequently, the Court quashed the impugned notification dated 13th December 2018, declaring the "C" Form obsolete and invalid. The writ petition was allowed in favor of the petitioner, highlighting the importance of adherence to statutory rules and limitations on the authority of tax authorities to retrospectively invalidate forms that have been utilized for tax compliance purposes.
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