2019 (7) TMI 276 - HC - VAT and Sales Tax

Concessional rate of tax - production of 'C' Forms - assessment year i.e., 2006-2007 - HELD THAT - Considering that there was floods, deluge, disruption of normal life in November-December of 2015, this Court is inclined to set aside the impugned order and give an opportunity to the writ petitioner to produce the C Forms - Personal hearing is fixed on 15.07.2019 (Monday) at Half Past 11 (11.30 a.m) in the office of the sole respondent - If the writ petitioner does not avail aforementioned opportunity of personal hearing on 15.07.2019, the impugned order will stand revived. Petition disposed off.

Summary

Issues involved:
- Interpretation of the Central Sales Tax Act, 1956 and Central Sales Tax Rules, 1957 regarding concessional rate of tax based on 'C' Forms.
- Failure of the writ petitioner to respond to notice and produce declaration forms.
- Impact of natural calamities on the ability to produce required documents.
- Judicial intervention to facilitate the production of 'C' Forms by the writ petitioner.

Analysis:
1. The main issue in this case revolves around the entitlement of the writ petitioner, a dealer under the Central Sales Tax Act and Rules, to a concessional rate of tax upon production of 'C' Forms for the assessment year 2006-2007.

2. The respondent had determined a taxable turnover for the mentioned assessment year and calculated the tax due, noting that the writ petitioner failed to file objections or submit the required 'C' Forms despite a prior notice.

3. The writ petitioner argued that they did respond to a pre-assessment notice in 2015, explaining delays in producing the 'C' Forms due to heavy rain and floods, which affected normal operations.

4. Considering the circumstances of the natural calamities in 2015, the Court set aside the impugned order to allow the writ petitioner to produce the 'C' Forms, emphasizing that no opinion on the merits of the case was expressed.

5. The Court scheduled a personal hearing for the writ petitioner to present the necessary documents, with a strict condition that failure to attend would result in the revival of the impugned order, while compliance would lead to the respondent issuing suitable orders within a specified timeline.

6. The judgment concluded by disposing of the writ petition with the outlined directions, highlighting the importance of the writ petitioner's timely compliance to avoid adverse consequences.

This detailed analysis encapsulates the critical aspects and legal implications of the judgment rendered by the Madras High Court in the specified case.