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TMI Blog1970 (1) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the assessee had sufficient time to produce 'C' form, but had failed to do so. A second appeal against the assessment was carried to the Sales Tax Appellate Tribunal. Before the Tribunal, the assessee stated that the 'C' form No. H. 461683 dated 18th January, 1962, was collected by the United Commercial Bank, Rourkela, on behalf of the assessee from M/s. Narayan Traders, Rourkela, but it was lost in transit. Before the Tribunal the assessee filed an affidavit to the effect that they had requested M/s. Narayan Traders, Rourkela, to send a duplicate copy of the 'C' form in respect of the above transaction, but they had expressed their inability to send a copy of the 'C' form on account of the fact that in the recent riots that took place at Rourkela, their shop was looted and in fire their machinery worth three lakhs of rupees was gutted and that in those circumstances they were unable to help the assessee by sending a duplicate copy of the 'C' form. Nevertheless, they expressed their willingness to furnish an indemnity bond. Accepting the arguments advanced by the assessee's counsel, the Sales Tax Appellate Tribunal held that the 'C' form was lost while it was in transi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxed at a higher rate for the technical reason that 'C' form was not produced. The tax at 7 per cent. had already been paid. At this point of time, even if the assessee succeeds in getting a duplicate copy of 'C' form from the purchaser, he would not be able to get a refund from the sales tax department and, therefore, the order of the Sales Tax Appellate Tribunal should not be disturbed. We have carefully considered the submissions made before us by the learned Advocates. In order to appreciate the contentions raised by the parties, it is necessary to bear in mind the actual language used in the concerned section and the rules framed under the Central Sales Tax Act. The relevant portion of section 8 of the Central Sales Tax Act reads as follows: "8. (1) Every dealer, who, in the course of inter-State trade or commerce- (a)......... (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3) shall be liable to pay tax under this Act, which shall be one per cent. of his turnover. (2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of registration of the purchasing dealer as being intended for resale by him subject to the rules made by the Central Government in that behalf, or (2) for use by him in the manufacture and processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power. Such sale is liable to be taxed under section 8(1)(b) of the Central Sales Tax Act at 1 percent. Section 8(4) controls the applicability of section 8(1) and says that section 8(1) shall not apply to any inter-State sale, unless the selling dealer furnishes to the prescribed authority 'C' form duly signed by the purchasing dealer and obtained by him in the manner prescribed. The language of section 8(4) is express, explicit and mandatory. The benefit of taxation at 1 per cent. under section 8(1) of the Central Sales Tax Act is conditional upon the assessee producing and furnishing a prescribed declaration in 'C' form in the prescribed manner. "Prescribed" means prescribed under the rules. The "prescribed authority" contemplated under section 8(4) is the Commercial Tax Officer. Since the section contemplates furnishing of the 'C' form before the Commercial Tax Officer, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, i.e., section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act and rule 27-A of the Rules framed thereunder, his Lordship Subba Rao, J., speaking for the Supreme Court in Kedarnath Jute Manufacturing Co. Ltd. v. Commercial Tax Officer[1965] 16 S.T.C. 607 (S.C.); A.I.R. 1966 S.C. 12., observed as follows: "Sub-rules (3) and (4) of rule 27A are not helpful to the appellant. They provide only safeguards against abuse of the declaration forms by the purchasing dealers; they do not enable the selling dealer to either directly apply or to compel the purchasing dealers to apply for duplicate forms; nor do they enjoin the appropriate authority to give the selling dealer a duplicate form to replace the lost one. We realise that the section and the rules as they stand may conceivably cause unmerited hardship to an honest dealer. He may have lost the declaration form by a pure accident, such as fire, theft etc., and yet he will be penalised for something for which he is not responsible. But it is for the Legislature or for the rule-making authority to intervene to soften the rigour of the provisions and it is not for this court to do so where the provisions are clear and unambiguous." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eks also to prevent fraud and collusion in an attempt to evade tax. In the nature of things, in view of innumerable transactions that may be entered into between dealers, it will well nigh be impossible for the taxing authorities to ascertain in each case whether a dealer has sold the specified goods to another for the purposes mentioned in the section. Therefore, presumably to achieve the twofold object, namely, prevention of fraud and facilitating administrative efficiency, the exemption given is made subject to a condition that the person claiming the exemption shall furnish a declaration form in the manner prescribed under the section. The liberal construction suggested will facilitate the commission of fraud and introduce administrative inconveniences, both of which the provisions of the said clause seek to avoid." In view of the importance of the 'C' form, the rules framed by the State of Andhra Pradesh under the Sales Tax Act also provide the manner in which the 'C' form has to be proved. It must be proved by the production of the original itself. If it is lost in the custody of the purchasing dealer, or while it is in transit and before it reaches the selling dealer, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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