2017 (5) TMI 222 - HC - VAT and Sales Tax

Stock transfer - inter state sale - Form-F - acceptance of Form-F which was not submitted in the original assessment proceeding or before the first appellate authority and was submitted later - Held that - specific reason has not been assigned in Section 12-B application for belated filing of Form-F, but that would not be a material consideration. It was on record before Tribunal that these forms had been issued during the pendency of second appeal before Tribunal. The Tribunal, therefore, was required to have examined such forms, and it ought not to have been discarded, merely because it was filed for the first time before the Tribunal. So far as claim with regard to stock transfer of ₹ 28,06,523.73 is concerned, it is apparent that the assessee from the very initial stages has pressed its claim of stock transfer on the basis of documents on record - It was open for the assessee to have established with reference to other materials brought on record that the stock transfer had taken place. The specific case of the assessee of stock transfer backed by bill and other materials, which have been brought on record, have also not been taken note of by the Tribunal in its order - The order of Tribunal, therefore, on such count also cannot be sustained, and the matter is required to be reconsidered by the Tribunal on such facts. Appeal allowed by way of remand.

Summary

Issues:
Assessment of stock transfer and interstate sale for the assessment year 1997-98, rejection of Form-F claims by the Tribunal, acceptance of additional evidence at different stages of appeal process, imposition of interest under the Interest Waiver Scheme.

Analysis:

Assessment of Stock Transfer and Interstate Sale:
The case involved a dispute regarding stock transfer and interstate sale for the assessment year 1997-98. The assessee claimed stock transfer of a substantial amount to various branches throughout the country, supported by Form-F filings. However, certain Form-F submissions were rejected by the assessing authority and the Tribunal. Additionally, the claim for waiver of interest under the Interest Waiver Scheme was also rejected. The assessee challenged these decisions through the present revision, raising multiple questions for consideration.

Acceptance of Additional Evidence:
The Tribunal rejected certain Form-F submissions made by the assessee during different stages of the appeal process, citing reasons such as belated filing and lack of specific reasons in the application. However, the revisionist argued that the forms were filed during the pendency of the appeal before the Tribunal and should have been considered. The Court held that the Tribunal erred in disregarding the forms solely based on procedural grounds and should have examined them given the circumstances of their filing.

Imposition of Interest under the Interest Waiver Scheme:
The Tribunal affirmed the imposition of interest, disregarding the assessee's claim under the Interest Waiver Scheme. The Court refrained from commenting on this issue directly, as the matter was being remitted back to the Tribunal for fresh consideration. The Court emphasized that the Tribunal should reevaluate all aspects, including the interest waiver claim, based on the existing record without allowing the introduction of new evidence.

Conclusion:
The Court found discrepancies in the Tribunal's handling of Form-F submissions and the assessment of stock transfer claims. As a result, the matter was remitted back to the Tribunal for a fresh consideration. The Court directed the Tribunal to review all aspects, including the interest waiver claim and interstate sale issue, based on the existing record without permitting the introduction of new evidence. The revision was disposed of accordingly.