2018 (3) TMI 1043 - HC - VAT and Sales Tax

Issuance of C declaration Forms - pending government dues - unlocking the facility in the corresponding tax payer identification number and the general sales tax number - Penalty u/s 18(3) of the said Act - Held that - the writ petition is disposed of by directing the respondent to release the C Form declarations to which the petitioner is eligible - Simultaneously there will be a direction to the Puducherry Value Added Tax Act Appellate Tribunal Puducherry to take up for hearing the stay petition in I.A.No.1419 of 2017 and pass orders on merits and in accordance with law within a period of three weeks from the date of receipt of a copy of this order - this Court upheld the power of the respondent to withhold the C Form declarations as the respondent is statutorily empowered to do so and the Hon ble Division Bench of this Court has also upheld the said power - petition disposed off.

Summary

Issues:
1. Direction to issue C declaration Forms online.
2. Imposition of penalty under Section 18(3) of the Act.
3. Challenge to assessment order before Appellate Assistant Commissioner.
4. Appeal before Puducherry Value Added Tax Appellate Tribunal.
5. Request for C Form declarations and representation to respondent.
6. Legal position on withholding C Form declarations.
7. Disposal of writ petition and directions given.

Analysis:
1. The petitioner sought a direction for the respondent to issue C declaration Forms online by unlocking the facility in the tax payer identification number and the general sales tax number. The petitioner was assessed to tax for the year 2000-01 and paid the tax before the assessment order. However, penalty was imposed under Section 18(3) of the Act.

2. The Appellate Authority confirmed the orders passed by the Assessing Officer, noting that the petitioner paid the entire tax as per the assessment order. The Appellate Authority dismissed the appeal, stating that since the petitioner opted to pay tax only after findings of suppression of turnover, no interference was called for with the assessment order.

3. The petitioner then appealed before the Puducherry Value Added Tax Appellate Tribunal, which is pending along with a stay petition. The petitioner requested the respondent to issue C Form declarations, citing irreparable loss if not considered. A similar case was previously decided by the court, upholding the power of the respondent to withhold C Form declarations.

4. The Court acknowledged the statutory power of the respondent to withhold C Form declarations but questioned the justification for withholding in the petitioner's case. The Court found it harsh to withhold declarations when the petitioner was entitled to them and the penalty issue was pending before the Appellate Tribunal. The Court directed the respondent to release the C Form declarations and asked the Tribunal to hear the stay petition and pass orders within three weeks.

5. The Court emphasized that its order should not be treated as a precedent and was based on the unique circumstances of the case. It warned that if the petitioner defaults in tax payment, the respondent can take stringent action. The writ petition was disposed of with the specified directions to release the C Form declarations and address the stay petition promptly.