2020 (1) TMI 332 - HC - VAT and Sales Tax

Review application - Concessional rate of tax - failure to furnish the original Declaration Form 'C' and Form 'H' - Sales Tax Act - HELD THAT - The present writ petition filed by the Assessee has no merit and deserves to be dismissed - Not only the controversy on merits is covered by the decision of the Honourable Supreme Court consistently, but the scope of the Review prescribed under Section 37(7)(a) of the TNGST Act also does not permit the Tribunal to review the original order made on the basis of the claim of the Assessee that he was now ready to file the duplicate 'C' and 'H' forms to avail concessional rate of tax / exemption from payment of tax, and it is only upon discovery of the new and important facts, which were not within the knowlege of the Assessee despite due diligence, there can be ground for review, which is not the case in the present facts of the case. Since the Assessee was not entitled to claim the concessional rate of tax / exemption from payment of tax on the basis of duplicate 'C' and 'H' forms as per the law settled, the learned Tribunal cannot be said to have erred in rejecting the Review Application filed by the Assessee - petition dismissed.

Summary

Issues:
Challenge to Sales Tax Appellate Tribunal's order dismissing Review Application based on failure to furnish original Declaration Form 'C' and Form 'H' for claiming concessional rate of tax.

Analysis:
The judgment deals with a petition against the Sales Tax Appellate Tribunal's order dismissing a Review Application filed by the Assessee, M/s. Insap Flexibles & Engineers Private Limited, due to the failure to provide original Declaration Form 'C' and Form 'H' for claiming a concessional tax rate under the Sales Tax Act. The Tribunal had dismissed the Review Application on grounds that there were no new and important facts that were not within the Assessee's knowledge with due diligence, making the application not maintainable under Section 37(7) of the TNGST Act. The Tribunal emphasized the need for strict compliance with statutory provisions for claiming concessional rates of tax.

The counsel for the Revenue cited a Supreme Court judgment emphasizing the mandatory requirement of furnishing original forms for claiming concessional tax rates. The court reiterated the need for strict compliance with the provisions of the Act and Rules, stating that failure to comply disentitles the Assessee from availing the concessional rate of tax. The court highlighted that where statutes are penal in nature, they must be strictly construed and followed, and any hardship should be addressed by the legislature.

Given the absence of the Assessee's representation and the consistent legal position established by the Supreme Court, the court found no merit in the Assessee's petition. The court concluded that the Review Application was rightly rejected by the Tribunal as the Assessee was not entitled to claim the concessional rate of tax based on duplicate forms. The judgment emphasized that the grounds for review must involve the discovery of new and important facts not previously known to the Assessee despite due diligence, which was not the case here. Consequently, the court dismissed the Writ Petition, upholding the Tribunal's decision and emphasizing the importance of strict compliance with statutory requirements for claiming concessional tax rates.