a csutomer fail to provide c form, VAT + CST

[krishan sharma]

 dear sir

i have quiry regading to cst sale . if a (delhi) saler  recieved a purchase order from (up) buyer in the form of cst sale and saler completed the order as per buyer requirement and consideration paid by buyer as per order but buyer fail to issue c form to saler  against said sale in this situation , 
what can do saler so that he safe from penalty and interest charged by department against lower tax paid 

Posts / Replies

[CA Rachit Agarwal]

There are many such cases are pending before department for assessment. However "C" Form is mandatory requirements.

[pradeep khatri]

Dear Sir,

The  Honble Allahabad High Court had held that even thogh declaration form for claiming exemption/concession may be required to be filed during the course of assessment proceedings but, in cases of non furnishing thereof, tax has to be levied at the normal rate which would become the admitted tax and interest and would be liable from the due date of the return in which turnover was disclosed and exemption/concession has been claimed.  There is no scope for consideration of legitimate expectation or hope or bonafide pleas of the Act - CIT vs Control Switch Gears Co. Ltd. (2011) 10 VSTI 18 (All).

Further, you can also go through the case law 'J.K.Synthetics Ltd. vs. CTO (1994) 94 STC (SC) In this matter the Hon'ble Supreme Court had laid down cerntain principles regarding where  the dealer has paid tax bonafidely but the amount of tax is enhanced at the time fo assessment, which may be useful in deciding the above issue in hand.

 

Best Regards,

 

Pradeep Khatri