2017 (2) TMI 564 - HC - VAT and Sales Tax

Filing of necessary declarations and documents prior to the date of assessment - Held that - the necessary power vests in the respondent/Assessing Officer to accept the C-Forms, upon sufficient cause being shown for delay in filing the same - with regard to consideration of the C-Forms by the respondent/Assessing Officer, even at this stage, would have to be accepted. No difficulty in the respondent/AO considering the export sales documents, once the assessment is re-opened for considering the C-Forms. The respondent/Assessing Officer shall redo the assessment, after considering the documents and declarations placed - petition allowed by way of remand.

Summary

Issues:
Challenge to assessment order for A.Y. 2013-2014; Discrepancy in taxable turnover determination; Non-submission of C-Forms and export sales documents; Revision of assessment order.

Analysis:
The writ petition challenges the assessment order for A.Y. 2013-2014, where the petitioner was asked to pay tax of ?3,77,68,914.00 after adjustments for tax paid and Input Tax Credits. The respondent determined the taxable turnover to be ?1,07,68,52,424.00, differing from the petitioner's reported turnover of ?1,01,25,83,691.00. The additions to the turnover were made due to various reasons, including turnover not covered by C-Forms and disallowed export and E1-Sales claims. The petitioner, in response to a pre-assessment notice, mentioned the unavailability of its consultant and readiness to submit required documents. Despite this, the assessment order was passed on 16-11-2016, leading to a representation for revision by the petitioner on 29-12-2016, which was not addressed by the respondent.

The petitioner argued that the necessary C-Forms and export sales evidence were available and should be accepted even at this stage, citing Circulars and Rule 12(7) of the Central Sales Tax Rules. The Government Advocate contended that the petitioner failed to submit the required documents, justifying the assessment order. The Court agreed with the petitioner, emphasizing the authority's power to accept C-Forms upon showing sufficient cause for delay, as per Rule 12(7) and relevant Circulars. The Circulars highlighted the authority's discretion in accepting C-Forms even after the initial assessment, based on previous court decisions.

Regarding the export sales documents, the respondent argued against revising the assessment at this stage. However, the Court held that once the assessment is reopened for one reason, the authority can consider all relevant documents submitted, even if initially rejected. Consequently, the impugned order was set aside, and the respondent was directed to redo the assessment, considering all documents and declarations provided by the petitioner. The fresh assessment order must be passed after giving an opportunity to the petitioner's representative, with a requirement for a detailed, supplied copy of the order. The writ petition was allowed without costs, and connected miscellaneous petitions were closed.