2017 (1) TMI 335 - HC - VAT and Sales Tax

Rectification of assessment - Held that - if, the relevant C Forms and H Forms are filed and the difference in the figures appearing in the audit report (as available in the form WW and the monthly returns) is explained, the respondent could pass a fresh Assessment Order - petition allowed - decided in favor of petitioner.

Summary

Issues Involved:
Challenging Assessment Order and Rectification Order, refusal to accept statutory forms, concessional rate of tax on inter-state sales, exemption on various sales, difference in sales figures, aggrievement by Assessment Order and Rectification Order.

Analysis:
The petitioner filed two writ petitions to challenge the Assessment Order dated 31.12.2015 and the Rectification Order dated 21.01.2016. During the hearing, it was conveyed that all statutory forms and documents for the Assessment Year 2014-2015 were submitted, but the respondent refused to accept them. The Court permitted the petitioner to submit the relevant forms and documents and granted interim stay. However, it was later revealed that not all forms and documents were submitted, leading to a request for further time to do so.

The main controversy revolves around the petitioner's claim for a concessional rate of tax on inter-state sales using C Forms and exemption on various sales by submitting Form F. There is also an issue regarding the difference in sales figures between the audit report and monthly returns, with the petitioner providing explanations for the disparity. This disagreement with the figures resulted in the petitioner's grievance against the Assessment Order and Rectification Order issued by the respondent.

The respondent stated that if the required forms are filed and the sales figure differences are explained, a fresh Assessment Order could be passed. Consequently, the writ petitions were disposed of with specific directions. The Assessment Order and Rectification Order were set aside, allowing the petitioner to file all relevant statutory forms within three weeks and explain the turnover figure differences. The petitioner's representative was required to appear before the respondent for this purpose. The respondent was instructed to pass a fresh assessment order within eight weeks, considering the materials filed and explanations given. The petitions and pending applications were closed with no order as to costs.