2022 (8) TMI 1389 - HC - VAT and Sales Tax

Seeking acceptance of C and H forms - the forms could not be produced before the authority concerned for the reason beyond its control and the same is now available with it - disallowance of claim of deduction on account of second stage handling charges - HELD THAT - The writ petition is disposed of by setting aside the aforesaid impugned order of the revisional authority and the order of the appellate authorities and adjudicating authority only to the extent that the respondent-authorities concerned shall consider and accept the C and H forms in question referred in this writ petition subject to verification and genuineness of the transaction within four weeks from the date of communication of this order - so far as, on the issue of second stage handling charges is concerned the adjudicating authority concerned shall consider the same afresh by passing a reasoned and speaking and after giving an opportunity of hearing to the petitioner or its authorized representatives within four weeks from the date of communication of this order. Petition disposed off.

Summary

Issues:
Challenge to impugned order under West Bengal VAT Act, 2003 and Central Sales Tax Act, 1956 regarding C and H forms acceptance and deduction on "second stage handling charges."

Analysis:
The petitioner filed a writ petition challenging the order passed by the fast track revisional authority confirming the decisions of the adjudicating and appellate authorities with modifications. The petitioner sought relief for directing the adjudicating authority to accept the C and H forms, which were unavailable earlier but are now in possession. Additionally, the petitioner contested the disallowance of deduction on account of "second stage handling charges."

The petitioner argued that the imposition of tax on "second stage handling charges" was unjust as it was at the request of customers, mainly government agencies. The petitioner aimed to support this argument by citing various decisions. After considering the submissions and facts on record, the court disposed of the writ petition by setting aside the impugned orders. The authorities were directed to consider and accept the C and H forms subject to verification within four weeks. Regarding the issue of "second stage handling charges," the adjudicating authority was instructed to reconsider the matter, provide a reasoned decision, and grant an opportunity for a hearing within four weeks.

In conclusion, the court disposed of the writ petition with the mentioned directions and observations, ensuring a fair consideration of the C and H forms and a fresh assessment of the "second stage handling charges" issue by the adjudicating authority.