2021 (3) TMI 1083 - HC - VAT and Sales Tax

Seeking direction to issue C Form for the years 2007-08 to 2010-11 - concessional rate of duty on the goods supplied from outside State - HELD THAT - The situation that emerges from the record is that the petitioner at the relevant time was a registered dealer in West Bengal. Since the petitioner was awarded a contract for execution of certain work for respondent No.4 in Tripura, the petitioner and respondent No.4 appeared to have entered into an agreement which is manifested in Clause 13.2 that on the goods supplied by the petitioner directly to respondent No.4, the respondent No.4 shall issue certificate of concessional rate of duty. According to the petitioner, the goods supplied were in the course of interstate trade. The objections of the respondent No.4 for issuing C Form are completely invalid - From the reply filed by the State authorities, it emerges that such C Forms were not issued on account of anomaly in the valuations. As a State authority respondent No.4 ought to have conveyed this reason to the petitioner who could have either pointed out that there is no anomaly or reconcile the figures if it was possible. In the meantime, for want of C Forms the petitioner went on suffering duty at the higher rates. The Assessing Officer in West Bengal who had jurisdiction over the petitioner could not postpone the assessments for the fear of the same getting time barred. The respondent No.2 shall communicate the mismatch in figures which has prevented the said respondent from issuing C Form so far to the petitioner as well as respondent No.4 simultaneously within a period of two weeks from today - Petition disposed off.

Summary

Issues:
Petitioner seeks direction for issuance of "C" Form for concessional rate of duty for goods supplied from outside State for specific years. Dispute arises regarding issuance of "C" Form by respondent No.4, a State authority, to enable petitioner to claim concessional rate of duty.

Analysis:
1. The petitioner, a Kolkata-based company, participated in a tender floated by Tripura State Electricity Corporation Limited (TSECL) for installation and erection of transmission lines. The agreements between petitioner and TSECL included Clause 13.2, requiring TSECL to provide "C" Forms for concessional sales tax declaration on goods supplied directly by the petitioner. Petitioner claims a significant sum is blocked due to non-issuance of "C" Forms for the years 2007-08 to 2010-11.

2. Respondent No.4, TSECL, argues that petitioner, being a registered dealer in Tripura, cannot claim "C" Form for transactions with TSECL. Respondent disputes petitioner's claim for concessional rate of duty, citing the petitioner's registration status and the nature of the transactions. However, State taxing authorities take a different stance, acknowledging the application for "C" Forms but highlighting discrepancies in valuations as the reason for non-issuance.

3. The High Court observes that petitioner was a registered dealer in West Bengal during the relevant period, not in Tripura. The Court finds respondent No.4's objections to issuing "C" Forms invalid, emphasizing that the taxability of the sales should be determined by taxing authorities, not by TSECL. The Court directs respondents No.2 and 4 to address valuation discrepancies preventing "C" Form issuance, allowing petitioner to clarify or reconcile figures before issuance.

4. The Court refrains from commenting on the claim for concessional rate of duty, emphasizing that the assessing authority, not TSECL, should decide the appropriate tax rate. The Court issues specific directions for communication, response filing, and issuance of "C" Forms, ensuring the resolution of discrepancies within a specified timeframe. The judgment clarifies that the manner of benefiting from concessional rate of duty and any legal remedies available to the petitioner are left to the petitioner's discretion.