2021 (9) TMI 1239 - HC - VAT and Sales Tax

Seeking direction to respondents to enable the issuance of Form F by unblocking the online Form F facility of the petitioner - Time limitation of assessment orders - Section 34(2) of the Delhi Value Added Tax Act, 2004 - HELD THAT - Admittedly, in the present case, the respondents have not issued any Show Cause Notice and/or granted an opportunity of hearing to the petitioner before debarring it from issuing Form F from the online portal. In INFINITI RETAIL LIMITED VERSUS GOVERNMENT OF NCT OF DELHI ANR. 2020 (7) TMI 181 - DELHI HIGH COURT , this Court had considered the effect of Rule 5(4)(ii) of the CST (Delhi) Rules and held that the Commissioner cannot withhold issuance of declaration Form C to an assessee/applicant without passing a reasoned order, after affording an opportunity of hearing to the assessee/applicant. In terms of Rule 8(2) of the CST (Delhi) Rules, the provisions of sub-Rule 4 of Rule 5 in relation to the declaration Form C applies also to certificate in Form F - A conjoint reading of Rule 5(4)(ii) and Rule 8(2) of the CST (Delhi) Rules would make it clear that issuance of Form F can be withheld by the Commissioner only after granting an opportunity of hearing to the assessee and passing a reasoned order for the same. In the present case, both the above pre-conditions have admittedly not been complied with by the respondents. Therefore, the Commissioner could not have debarred the petitioner from issuing Form F from its online portal - the respondents are directed to enable the issuance of Form F facility on its online portal for the petitioner forthwith. Petition allowed.

Summary

Issues:
1. Petition seeking mandamus for unblocking online Form 'F' facility.
2. Declaration of reassessments for FY 2007-08 and 2008-09 as barred by limitation.
3. Blocking of online Form 'F' facility due to pending demands for different years.
4. Compliance with procedural requirements before debarring from issuing Form 'F'.

Analysis:
1. The petitioner filed a petition seeking a writ of mandamus to direct the respondents to unblock the online Form 'F' facility. The petitioner claimed that the facility was blocked due to pending demands for various assessment years. The court allowed the application for early hearing, and the petition was taken up for final hearing on the same day.

2. The petitioner also sought a declaration that reassessments for FY 2007-08 and 2008-09 were barred by limitation under Section 34(2) of the Delhi Value Added Tax Act, 2004. The respondents stated that the demand for those years had been removed, making this prayer unnecessary for further consideration.

3. The respondents had blocked the online Form 'F' facility for the petitioner citing pending demands for different years. The petitioner argued that it had already cleared the demands for certain years and that the demand for FY 2007-08 and 2008-09 had been set aside by the Tribunal. The respondents, however, asserted that the facility was blocked due to pending demands for other years.

4. The court considered the procedural aspect of the case, noting that the respondents had not issued any show cause notice or granted an opportunity of hearing to the petitioner before debarring it from issuing Form 'F' online. Referring to relevant rules, the court emphasized that the issuance of Form 'F' could only be withheld after granting an opportunity of hearing and passing a reasoned order, which the respondents had failed to do in this case.

5. Ultimately, the court allowed the petition, directing the respondents to enable the issuance of Form 'F' facility on its online portal for the petitioner. The court clarified that it had not expressed any opinion on the alleged claims of the respondents for other years against the petitioner. No costs were awarded in this matter.