2016 (4) TMI 395 - HC - VAT and Sales Tax

Seeking extension of time to produce statutory forms - Interstate sale of goods - Held that - the petitioner has already filed several applications seeking extension of time, produced statutory forms as it is apparently beyond its control. The second respondent shall consider the grant of additional time which shall be atleast of 60 days to produce the necessary statutory forms instead of those amounts which have not been supported by statutory forms. The respondent shall take into account the statutory forms uploaded on 05.02.2016 and such other statutory forms which may be uploaded now and in so far as the balance amount which are not supported by the statutory forms are concerned and the petitioner shall furnish a bank guarantee within two weeks. Petition disposed of

Summary

Issues:
Assessment proceedings under Central Sales Tax Act, 1956 for the years 2014-15, rejection of request for additional time to produce books of accounts, reassessment notice issued by the second respondent, legality and validity of reassessment order, demand notice for tax liability, request for further period to collect and file statutory forms, interpretation of Rule 12(7) of Central Sales Tax (Registration and Turnover) Rules, 1957, consideration of uploaded statutory forms, submission of bank guarantee, grant of additional time to produce necessary statutory forms.

Analysis:

1. The petitioner requested additional time to produce books of accounts due to ongoing audit activities and year-end closing. The second respondent rejected the request and issued a reassessment notice for tax liability, disregarding uploaded statutory forms. The petitioner challenged the legality of the reassessment order and sought direction for further time to collect and file statutory forms supporting tax exemption.

2. The petitioner argued that delays were due to non-timely issuance of statutory forms and requested consideration of uploaded forms. Citing the Supreme Court's ruling in State of H.P. v. Gujarat Ambuja Cement Ltd., the petitioner contended that filing declaration forms along with returns is not mandatory, and extensions can be granted by the Assessing Authority. The petitioner offered to provide a bank guarantee to support the claim of no tax liability.

3. The Government Advocate acknowledged the uploaded statutory forms and stated that revenue would consider them. However, for turnovers not supported by forms, the Tribunal would enforce the demand upon form production. The Advocate opposed the bank guarantee offer, emphasizing the need for revenue payment in compliance with the law.

4. The Court directed the second respondent to grant a minimum of 60 days for producing necessary statutory forms, considering uploaded forms, and requiring a bank guarantee for unsupported amounts. The Appellate Authority's orders were set aside, allowing time for form submission and maintaining the bank guarantee until assessment proceedings conclude.

This detailed analysis covers the issues raised in the legal judgment, addressing the petitioner's challenges, legal interpretations, and the Court's directives regarding reassessment, statutory forms, and bank guarantee submission.