2017 (4) TMI 1113 - HC - VAT and Sales Tax

Validity of order of assessment passed by Assessing Officer - interstate sales - non-production of C-Forms - case of appellant is that they are unable to get such C forms from the other end dealers and also explained as to why such inability exists even after grant of such extension of time - Held that - the extension of time granted twice by the Assessing Officer, only by 15 or 20 days may not be a sufficient time for producing the C forms, considering the volume of transaction involved in this case. - the petitioner can be given one more opportunity for production of such balance C forms - matter is remitted back to the Assessing Officer for redoing of assessment once again - petition allowed by way of remand.

Summary

Issues:
Challenge against order of assessment under Central Sales Tax Act, 1956 for assessment year 2015-2016.

Analysis:
The petitioner contested the order of assessment that fixed the tax liability at a significant amount after considering turnover, ITC adjustments, and non-submission of 'C' forms. The petitioner argued that they faced difficulties in collecting 'C' forms within the stipulated time, despite making efforts to secure them. The government advocate, on the other hand, highlighted that the petitioner failed to utilize the time granted for submitting the balance 'C' forms. The court noted the timeline of events leading to the assessment order, where the petitioner requested multiple extensions to produce the 'C' forms due to difficulties in obtaining them from dealers. The court acknowledged that the petitioner did not dispute having the 'C' forms but faced challenges in collecting them. Recognizing the need for sufficient time considering the transaction volume, the court allowed the petitioner another opportunity to produce the balance 'C' forms. The court set conditions for redoing the assessment, requiring partial tax payment, submission of balance 'C' forms, and reassessment by the Assessing Officer within specified timelines. The court clarified that it was not expressing any opinion on the assessment merits, leaving it to the Assessing Authority for consideration.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the court's assessment of the situation, the timeline of events leading to the assessment order, and the conditions set for redoing the assessment.