2019 (5) TMI 1 - HC - VAT and Sales Tax

Grant of Exemption as per G.O.Ms.No.381/CT and RE dated 15.09.1997 - sales made to M/s.Ford India Limited - HELD THAT - It is not in dispute that the Petitioner submitted the relevant declaration to avail the benefit of the exemption notification within a period of about four months from the date of assessment. Accordingly, the said declaration could very well have been verified for purposes of ascertaining the genuineness thereof and considered in the revision proceedings. This Court quashes the order of the third Respondent and consequently directs the first Respondent to take into consideration the declaration submitted by the Petitioner in respect of the claim for exemption after verifying the genuineness thereof and thereafter complete a fresh assessment, after providing reasonable opportunity to the Petitioner - petition disposed off.

Summary

Issues:
1. Exemption from payment of taxes for sales made to a registered dealer under the TNGST Act.
2. Rejection of revision petitions due to failure to submit the relevant declaration in a timely manner.
3. Interpretation of the exemption notification and the acceptance of forms and declarations after the stipulated period.
4. Application of previous court judgments to the current case.

Analysis:
1. The petitioner, a dealer in automobile spare parts, sought exemption from taxes for sales made to a registered dealer, Ford India Limited, under the TNGST Act. The assessment was completed at 12% tax rate due to the absence of the relevant exemption notification during assessment.

2. The petitioner's revision petitions were successively rejected by the Deputy Commercial Tax Officer and the Deputy Commissioner, citing failure to submit the required declaration even after receiving pre-assessment notices. Subsequent revision petitions were also dismissed by the Joint Commissioner of Commercial Taxes.

3. The court deliberated on the genuineness of the declaration submitted by the petitioner within four months of assessment. The respondents acknowledged the general practice of accepting late submissions of forms subject to verification. The court referred to a previous judgment directing the authorities to consider forms submitted by the petitioner for re-assessment.

4. Relying on a previous court judgment, the petitioner argued for the acceptance of the declaration submitted within a reasonable period. The court, after considering submissions from both parties, concluded that the declaration should have been verified for genuineness and considered during revision proceedings. The court quashed the impugned order and directed a fresh assessment by the first respondent within four weeks, ensuring justice for the petitioner.

This detailed analysis highlights the issues raised in the legal judgment and the court's decision based on the interpretation of relevant laws and previous judgments.