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TMI Blog1975 (3) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... r, obtained C form declarations from the purchasers in Kerala and enclosed them with a note that they were producing the same without prejudice to their contention that the transactions were not inter-State sales. The joint Commercial Tax Officer, after considering the nature of the transactions and the evidence available, came to the conclusion that they were inter-State sales, and that, since the goods had moved from this State, they were liable to be taxed under section 3(a) of the Central Sales Tax Act, 1956 (hereinafter referred to as the Act). But, as regards the concessional rate claimed by the petitioners, he held that, as the C form declarations were not filed along with the original returns or, at any rate, before the final assessment, they could not be accepted in the reassessment proceedings. Accordingly he held that tax was leviable at the higher rates and that the concessional rate under section 8 (1) of the Act was not applicable. This order was confirmed by the Appellate Assistant Commissioner, who also held that the C form declarations could not be accepted at the stage of reassessment. The Tribunal also, while confirming the finding that they were inter-State sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in form C of the Central Sales Tax (Registration and Turnover) Rules, 1957. If the condition is not satisfied, under section 8(2) the dealer will have to pay tax on the inter-State sales at the higher rate of seven per cent, during the assessment years 1961-62 and 1962-63, and at ten per cent, during 1963-64. Section 13 enabled both the Central Government and the State Government to frame rules. In exercise of the powers under section 13(3) and (4), the State Government framed the Central Sales Tax (Madras) Rules, 1957. Rule 5 of the said rules related to the production of C form declaration and the authority to whom it should be produced and the time at which it will have to be produced. The relevant portion of that rule was to the following effect: "Every dealer registered under section 7 of the Act shall submit a return of his transactions in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India In form 1 together with the connected declaration form or duplicate of such form where the original has been lost, so as to reach the assessing authority on or before the 25th of each month showing the turnover for the preced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nected monthly return. But, when it was pointed out to him that rule 10 of the Madras Rules require separate declarations in respect of each of the transactions, the assessee obtained separate declarations in form C for each of the transactions and tendered them to the assessing officer before the assessment was completed. The assessing authority considered that he had no power to condone the delay in filing the declaration and that, therefore, the assessee was not entitled to the concestional rate of tax in respect of those transactions. In respect of certain other transactions, for which the assessee had produced the declarations In form C, the assessing authority taxed him at the concessional rate. When the assessee filed an appeal questioning the rejection of the fresh declarations filed by him complying with the proviso to rule 10(1), the Appellate Assistant Commissioner not only confirmed the view of the assessing authority, but he also stated that even some of the declarations in form C which had been accepted by the assessing authority were defective, In that the registration numbers of the purchasing dealers had either not been correctly given or not given at all. Thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint, namely, that, if the declarations had been lost, and if there was delay in getting duplicate forms or counterfoils of the same, the Appellate Assistant Commissioner might consider whether they were not filed within a reasonable time and receive the same if satisfied that the delay was not unreasonable. In another decision, Madura Mills Company Limited v. Government of Madras[1970] 25 S.T.C. 407., this court ruled that, in considering the question of delay, the authority should act prudently and, as a reasonable man, consider the totality of the facts and circumstances of each case and come to a diligent conclusion in dealing with the reasonableness of the time within which the declarations in C form should have been produced, and the delay in the production of the same. The Allahabad High Court also has taken a similar view in Commissioner of Sales Tax v. Kanpur Dal and Rice Mills[1970] 25 S.T.C. 511., where it has held that, where the assessing authority had wrongly refused to allow sufficient time to the assessee to file the declarations, the appellate authority could grant time for filing the same. These decisions go to show that the declaration in C form need not nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing in the rules which suggest that the declaration could not be produced at the time of reassessment, if the assessee was not otherwise guilty of laches, nor is there any other prohibition against accepting the declarations at the stage of reassessment proceedings by the assessing officer. In this case, the Tribunal and the authorities below rejected the declarations on the ground that they were not produced before the "final assessment". Probably this view was taken in view of the observations of the Supreme Court In Sales Tax Officer, Ponkunnam v. Abraham[1967] 20 S.T.C. 367 (S.C.)., that, in the absence of any such timelimit, It was the duty of the assessee to furnish the declaration in form C within a reasonable time before the order of assessment was made by the Sales Tax Officer. We do not think that the learned Judges, by those observations, intended to lay down that the C form declaration could not be produced at any stage after the order of assessment, even if circumstances justified such a course. In the other decisions, which we have noted above, the declarations were permitted to be filed even at the appellate stage and before the Tribunal. Further, when once reasses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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