2022 (11) TMI 688 - HC - VAT and Sales Tax

Inter-state sales/branch transfers or not - requirement of production of various documents - Stock Register - audited balance sheet - DVAT-31 Form - C and F Forms in original - copies of bank statements showing transactions and relevant extracts from party ledger - HELD THAT - The intent, with which reference is made to the material that the petitioner needs to produce, is to enable the petitioner to establish its claim, that the subject interstate sale transactions took place, and thus assist the assessing officer to reach a conclusion, as to whether or not the said assertion is factually correct. - The assessing officer will permit the petitioner to place on record, all such evidentiary material, which will enable it to establish its stand - Illustratively, the petitioner can, if deemed necessary, also place affidavits of the transporters and the recipients of the subject goods. The assessing officer would be free to summon the affiants, if such affidavits are placed on record - The assessing officer will complete this exercise, within the next eight weeks. For this purpose, the petitioner s authorized representative will appear before the assessing officer on 11.11.2022, at 12 00 PM - writ petition is disposed off.

Summary

Issues: Challenge to orders dated 31.01.2020 regarding interstate sales in 2013-14; Petitioner's need to establish the occurrence of interstate sales; Production of necessary documents by the petitioner; Assessment by the assessing officer within eight weeks; Extension of limitation period under DVAT Act, 2004.

Analysis:
1. The writ petition challenges orders dated 31.01.2020 concerning interstate sales in the first, second, and fourth quarters of 2013-14, along with penalty orders dated 03.02.2020. The central issue is whether the petitioner engaged in interstate sales during the subject period.

2. Despite various legal arguments raised in the petition, both parties agree on the following terms for disposal: setting aside the impugned orders, petitioner providing essential documents to prove interstate sales/branch transfers, such as stock register, audited balance sheet, DVAT-31 Form, C and F Forms, bank statements, and purchase/tax invoices.

3. The petitioner is required to present the mentioned documents to establish the occurrence of interstate sales, aiding the assessing officer in determining the accuracy of the claim. Additionally, the petitioner may need to produce original local purchase invoices, goods receipts, and copies of RCs of purchasing dealers to support the movement of goods.

4. The assessing officer is directed to allow the petitioner to submit all necessary evidence to support their position. Affidavits from transporters and goods recipients can be provided if deemed essential, with the officer having the authority to summon the affiants if required.

5. The assessing officer must complete the evaluation within eight weeks, and the petitioner's representative should appear before the officer on a specified date. If the assessment is unfavorable to the petitioner, they retain the right to challenge it in accordance with the law.

6. Importantly, the directions provided extend the limitation period as per Section 34(2) of the DVAT Act, 2004. The writ petition is resolved based on the outlined terms, and any pending applications will be closed accordingly.