2017 (8) TMI 88 - HC - VAT and Sales Tax

Whether the dis-allowance of claim of deduction on sales return cash discount to the customers for the turnover of ₹ 2,60,454/- assessed at 4% is to be sustained or not? Whether the dis allowance of the claim of concessional rate of tax for the states effected to ESI Corporation for ₹ 4,99,230/- assessed at 10% is to be sustained or not? Held that - the issues are squarely covered by the decision of the Hon ble Division Bench of this Court in the assessee s own case in W.P.No.960 of 2005 dated 15.05.2009, wherein, the Division Bench dismissed the writ petition filed by the State - petition allowed for this part. Whether the interstate sales of ₹ 1,86,109/- assessed at 10% for the non submission of c Forms is to be sustained or not? - Held that - the finding of the second respondent is sustained and to that extent, the writ petition is dismissed. Petition allowed - decided partly in favor of petitioner.

Summary

Issues:
- Challenge to order passed by the second respondent dated 25.02.2004 regarding deduction on sales return cash discount, concessional rate of tax, and non-submission of 'C' Forms for interstate sales.

Analysis:
- Issue 1 & 2 - Deduction on sales return cash discount and concessional rate of tax: The court noted that the issues were covered by a previous decision of the Division Bench in a similar case. Referring to the statutory provision Section 8(4) of the Central Sales Tax Act, 1956, the court emphasized the conditions for goods sold to the Government and the requirement of a duly filled and signed certificate by an authorized officer. The court highlighted that the delivery of goods to a third party, like E.S.I. hospitals, at the direction of the Government does not change the buyer-seller relationship, especially when payment is made by the Government. The court concluded that the Government's role as a buyer was established, and it had the authority to issue the 'D' form through its authorized officer. Therefore, the court dismissed the writ petition in line with the previous judgment.

- Issue 3 - Non-submission of 'C' Forms for interstate sales: The court upheld the finding of the second respondent regarding the assessment at 10% for non-submission of 'C' Forms for interstate sales. The judgment indicated that the decision on this issue was different from the first two issues. Consequently, the court dismissed the writ petition concerning this specific matter.

- Overall Decision: The court partly allowed the writ petition concerning the deduction on sales return cash discount and concessional rate of tax based on the precedent set by the Division Bench. However, the petition was dismissed regarding the non-submission of 'C' Forms for interstate sales. No costs were awarded, and the connected miscellaneous petition was closed as a result of the judgment.