2016 (10) TMI 115 - HC - VAT and Sales Tax

Failure to furnish C Form Declarations in time - whether the power under Section 55 of the Act is a power of review or only a rectification? - Held that - the declaration forms to avail concessional rate of tax could be produced by the dealer at any time during the course of assessment or thereafter and if those forms are produced, then the Assessing Officer would be required to redo the assessment. The inability to produce the C Forms at the appropriate time was for reasons beyond the control on the part of petitioner - the respondent directed to consider the petition filed for rectification along with the C Forms - petition allowed - decided in favor of petitioner.

Summary

Issues:
Challenge to order under Section 55 of the Tamil Nadu General Sales Tax Act, 1959 for failure to produce 'C' Form Declarations.

Analysis:
The petitioners challenged an order rejecting their application under Section 55 of the Act due to non-production of 'C' Form Declarations. The Assessing Officer completed the assessment ex parte as the petitioners failed to produce the required declarations. The main issue was whether Section 55 provides for review or rectification. The petitioners argued their inability to produce the forms was beyond their control and submitted the forms later. The court noted that the Assessing Officer must consider the forms if produced, as per a recent circular allowing a liberal approach in such cases. The court directed the respondent to reconsider the petition with the 'C' Forms.

The court emphasized that the petitioners' failure to produce the 'C' Forms at the time of assessment should not bar them from seeking rectification under Section 55. Despite not producing the book of accounts initially, the petitioners now sought to submit the 'C' Forms, which were obtained subsequently. The court held that the respondent should review the petition along with the new enclosures, considering the merits and applicable laws. If the petitioners had complied with a stay order, the Assessing Officer would pass further orders based on the outcome of the Section 55 application.

In conclusion, the writ petitions were allowed, and the impugned orders were set aside. The petitioners were directed to represent their petitions under Section 55 along with the new enclosures for a fresh assessment. No costs were awarded, and the connected miscellaneous petitions were closed.