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2023 (8) TMI 52 - HC - VAT and Sales TaxDisallowance of F forms - disallowance for the reason that the Commissioner of Sales Tax, Rajasthan had issued a notification declaring these F forms obsolete and invalid under Rule 17(10) of the Central Sales Tax (Rajasthan) Rules - HELD THAT - The Tribunal after considering the law as laid down by the Apex court in State of Maharashtra Vs. Suresh Trading Company 1996 (2) TMI 451 - SUPREME COURT held that the dealer was entitled to rely upon the certificate of registration of the other dealer and to act upon it. Whatever might be the effect of the retrospective cancellation of the other dealer, it could have no effect upon any person who had acted upon the strength of a registration certificate when the registration was effective. The Tribunal also observed that Hon ble Apex Court had held that it was not the duty of persons dealing with registered dealers to find out whether a state of facts existed which would justify the cancellation of their registration. The judgment of the Apex Court in State of Karnataka Vs. Ecom Gill Coffee Trading Private Limited 2023 (3) TMI 533 - SUPREME COURT , relied upon by Ms Chavan, will be of no assistance to appellant since in that case the court held that the the ITC can be claimed only on the genuine transaction of the sale and purchase and if a dealer knowingly issues or produces a false tax invoice, credit or debit note, declaration, certificate or other document, such a dealer is liable to pay the penalty. In that case, the assessing officer had doubted the genuineness of the transactions and given cogent reasons on the basis of evidence and material on record. But in the case at hand, the assessing officer had himself found the F forms in order and issued the intimation in Form No. 604 on 9th July 2013 allowing the claim of transfer of goods to agent (movement of goods to the State of Rajasthan occasioned not by the reason of sale). There are no substantial question of law - appeal dismissed.
Issues involved:
The appeal challenging an order passed by the Maharashtra Sales Tax Appellate Tribunal allowing the respondent's appeal. Issue 1: Compliance with Section 6(A) of the Central Sales Tax Act The respondent transferred goods to their consignment agent in Rajasthan, complying with Section 6(A) of the Act by furnishing Form F and evidence of dispatch. The Assistant Commissioner verified the forms and approved the movement of goods to Rajasthan not by reason of sale. Issue 2: Disallowance of F forms The Assistant Commissioner sent a show cause notice proposing to disallow the F forms due to a notification from Rajasthan declaring them obsolete. The assessment order disallowed the forms, leading to a demand which was challenged by the respondent in subsequent appeals. Issue 3: Breach of rules by the State One ground raised was the failure of the Maharashtra Government to publish the notification declaring F forms obsolete, as required by rules. It was argued that this breach by the State itself should result in quashing the assessment order. Issue 4: Validity of F forms issued to the agent The respondent contended that the F forms were issued to the agent in 2010-2011 when the firm was in existence, even though it was declared obsolete in 2016. The Tribunal relied on precedent to support the respondent's right to claim deduction based on the forms issued during the valid period. Issue 5: Precedent and legal interpretation The Tribunal referenced the Supreme Court's decision in a similar case to support the respondent's position, emphasizing that subsequent cancellation of registration cannot affect the right to claim deduction based on valid forms issued earlier. Issue 6: Judicial precedents The Tribunal also cited decisions from the Madras and Karnataka High Courts to support its conclusion regarding the validity of the respondent's claim based on the F forms issued to the agent. Separate Judgement: The judgment dismissed the appeal, stating that no substantial question of law arose based on the facts and legal interpretations presented during the proceedings.
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