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2018 (2) TMI 122 - HC - VAT and Sales TaxValidity of assessment order - finality attached to the Form F declaration - petitioner s contention is that the third respondent committed an error in disallowing the claim of exemption on the ground that the third parties are agents of the petitioner and not the employees of the petitioner, without taking into consideration the legal position that, once Form F declaration is filed, it is mandatory that exemption ought to be necessarily granted. Held that - similar issue in the case of M/s.Hindustan Petroleum Corporation Ltd. v. The Deputy Commissioner (CT) 2016 (12) TMI 313 - MADRAS HIGH COURT . In the said case, the writ petitions were filed challenging the assessment orders under the CST Act and the TNGST Act by which the assessing officer disallowed the stock transfer effected by the petitioner therein to their depot at Tada, State of Andra Pradesh. The Court considered various decisions and held that the assessing officer in the said case misdirected himself in not posing a right question for arriving at a right conclusion. The reasons assigned in the impugned order with regard to finality of the Form H declaration is incorrect. This writ petition is partly allowed, in so far as it relates to enquiry into the Form F declaration and the same is set aside and the matter is remanded to the third respondent to conduct an enquiry, examine the correctness of Form F declaration, who shall afford an opportunity of personal hearing to the petitioner - appeal allowed in part and part matter on remand.
Issues involved:
Challenge to assessment order under Central Sales Tax Act, 1956 for the year 2002-03; Finality attached to Form F declaration. Analysis: The petitioner contested an assessment order under the Central Sales Tax Act, 1956 for the year 2002-03, focusing on the finality attached to the Form F declaration. The petitioner argued that the third respondent erred in disallowing the exemption claim based on the relationship between the petitioner and third parties, emphasizing that once Form F is filed, exemption must be granted. This contention was supported by legal precedents from various courts, including the Supreme Court. The judge referred to a similar case involving Hindustan Petroleum Corporation Ltd., where the assessing officer's failure to consider the Form F declaration led to a misdirected conclusion regarding an inter-state sale. The judge highlighted the Supreme Court's guidance on the type of enquiry required when a Form F declaration is filed, emphasizing the need for a fair and reasonable assessment by the authority. The absence of any enquiry in the present case led the judge to reject the conclusion of an inter-state sale. The judgment also referenced a previous decision by the Division Bench of the Court, emphasizing that the enquiry under Section 6A(2) of the CST Act should focus on verifying the truth of the particulars in Form F and considering any additional evidence provided by the dealer. The judge noted that a proper enquiry by the Assessing Officer could reveal whether the transaction was a consignment sale or an inter-state sale. Additionally, a certificate obtained by the petitioner from the Assistant Commissioner was highlighted as crucial evidence that should be considered during the enquiry process. The judge concluded that the respondent's failure to conduct a proper enquiry resulted in an erroneous order, warranting the quashing of the impugned orders and remanding the matter for a correct assessment. In response to the government advocate's mention of other issues in the impugned order, the petitioner's counsel clarified that the writ petition was solely concerned with the scope of enquiry on the Form F declaration. Consequently, the judge partly allowed the writ petition, setting aside the enquiry into the Form F declaration and remanding the matter to the third respondent for a proper examination and a speaking order on merits and in accordance with the law. No costs were awarded, and the connected miscellaneous petition was closed.
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