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2017 (4) TMI 134 - HC - VAT and Sales TaxValidity of Form-III C (2), issued under the U.P. Trade Tax Act, 1948 - denial on the ground that such form is invalid by virtue of Rule 12-B(4) of the U.P. Trade Tax Rules, 1948 - Held that - the form issued in an financial year would be valid for the transaction of sale or purchase, during financial year or transactions made during two financial years immediately preceding that financial year. Form-III C (2) is issued blank by the concerned tax authority with reference to a particular period. In the facts of the present case the registration of selling dealer existed for the period between 23.12.2006 to 31.12.2007. Such registration was granted in the year 2010. In case issuance of Form-III C (2) in the year 2010 is treated valid for the financial year 2010, then the very purpose and object of issuing registration and Form-III C (2) would be frustrated. Form-III C (2) as well as Rule 12-B(4) would have to be read harmoniously. The blank form issued after dealer s registration in 2010 for the period 23.12.2006 to 31.12.2007 would relate back to the financial year during which the registration itself existed and not on the date of its actual issue. Such interpretation would be reasonable as the selling dealer otherwise had no registration existing in the year 2010 and no form could be issued. In such circumstances, this Court is of the opinion that once Form-III C (2) has been issued by selling dealer pursuant to its registration allowed for a previous period 26.12.2016 to 31.3.2017, the issuance of Form-III C (2) would have to be treated during the year 2006-2007, and would be valid for the transactions of sale and purchase undertaken during 26.12.2006 to 31.3.2007 - revision disposed off.
Issues:
Validity of Form-III C (2) under U.P. Trade Tax Act,1948 disallowed by First Appellate Authority and Tribunal based on Rule 12-B(4) of U.P. Trade Tax Rules, 1948. Analysis: Issue 1: Validity of Form-III C (2) The assessee, engaged in purchasing and selling mentha, faced disallowance of relief of Form-III C (2) by the First Appellate Authority and Tribunal due to Rule 12-B(4) of U.P. Trade Tax Rules, 1948. The selling dealer was authorized to issue Form-III C (2) for the period 23.12.2006 to 31.12.2007 in 2010. The primary contention was whether the form issued in 2010 could be considered valid for transactions dating back to 2006-2007. The First Appellate Authority and Tribunal rejected the appeal on the grounds of the form being issued beyond three years from the transactions. The revisionist argued that the form should be considered valid for the relevant period as per Section 3-D of the Act, emphasizing the registration period of the selling dealer. The Standing Counsel, however, maintained that the form issued in 2010 could not be valid based on Rule 12-B(4). Issue 2: Interpretation of Rule 12-B(4) Rule 12-B(4) stipulates the validity of forms issued by the Trade Tax Officer for specific financial years. The Court analyzed the rule in conjunction with the facts of the case, highlighting that the selling dealer's registration existed from 23.12.2006 to 31.12.2007 but was granted in 2010. The Court emphasized harmonious interpretation of Rule 12-B(4) and Form-III C (2) issuance. It reasoned that treating the form issued in 2010 as valid for 2006-2007 would align with the purpose of registration and form issuance. The Court concluded that the form issued for the earlier period should be considered valid for transactions during 26.12.2006 to 31.3.2007, ensuring the selling dealer's registration period is accounted for. This interpretation was deemed reasonable and aligned with the law. In conclusion, the High Court ruled in favor of the revisionist, holding that the Form-III C (2) issued in 2010 should be considered valid for the transactions undertaken during 26.12.2006 to 31.3.2007, as it was in line with the registration period of the selling dealer. The Court's decision provided clarity on the interpretation of Rule 12-B(4) and the validity of forms issued under the U.P. Trade Tax Act, 1948.
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