2022 (11) TMI 399 - HC - VAT and Sales Tax

Benefit of concessional rate of tax - rectification of C-Forms - principal grievance of the petitioner as articulated in the writ petition is, that the petitioner is not being permitted to revise its VAT/CST returns concerning Financial Years 2016-2017 and 2017-2018 - HELD THAT - This writ petition is disposed of, with the consent of the learned counsel for the parties, with a direction to the respondents/revenue to issue the rectified C-Forms, subject to the verification of entitlement on merits, without being burdened with the issue concerning limitation. The writ petition disposed off.

Summary

Issues:
Petitioner not permitted to revise VAT/CST returns for Financial Years 2016-2017 and 2017-2018 to obtain rectified C-Forms for concessional tax rate.

Analysis:
The petitioner's principal grievance, as stated in the writ petition, is the denial of permission to revise VAT/CST returns for the Financial Years 2016-2017 and 2017-2018. By allowing the revision, the petitioner seeks rectified C-Forms to benefit from a concessional tax rate. This issue has been addressed in various cases by the Delhi High Court, including a judgment in W.P.(C)No.4092/2017 titled Samsung C&T Pvt. Ltd. v. Commissioner, Trade & Taxes & Anr. The judgment highlighted the importance of rectifying errors in C-Forms for inter-state purchases to reflect the correct amounts and obtain the necessary benefits.

One of the key judgments referenced in the case is the decision in Allied Automation Engineering Services Private Limited v. Commissioner of Trade and Taxes, where the court directed the authorities to issue fresh C-Forms for correcting mistakes in the relevant quarters. The court emphasized the importance of rectification based on previous decisions and granted relief to the petitioners. The judgment also mentioned that the directions for issuing rectified C-Forms would be suspended until the pending civil appeals in the Supreme Court are resolved.

In line with previous rulings and directions issued in similar cases, the High Court disposed of the present writ petition by directing the revenue authorities to issue rectified C-Forms to the petitioner, subject to verification of entitlement on merits. The court clarified that this direction would be suspended until the final decision on the civil appeals pending in the Supreme Court is reached. Compliance with the court's decision is mandated to align with the Supreme Court's rulings on the matter.

The court reiterated that the direction to issue rectified C-Forms will remain suspended until the resolution of the civil appeals pending in the Supreme Court, as highlighted in previous cases. The compliance with the court's decision is contingent upon the outcome of the pending civil appeals, ensuring consistency with the rulings of the higher court. The writ petition was ultimately disposed of based on the terms outlined in the judgment, with parties instructed to act based on the digitally signed copy of the order provided by the court.