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TMI Blog2014 (7) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the apex court has held the requirement of submitting the original C form and, therefore, the order passed by the revisional authority is legal and proper and prayed for dismissal of the writ petition. - Decided in favor of assessee. - Writ Petition No. 2512 of 2009 - - - Dated:- 23-7-2013 - JAISWAL P.K. AND PRAKASH SHRIVASTAVA, JJ. The judgment of the court was delivered by P.K. JAISWAL J.- This writ petition under article 226/227 of the Constitution of India, has been filed by the assessee, against respondent No. 2 and prayed for issuance of writ of certiorari to modify the order dated January 2, 2008 passed by the Additional Commissioner, Commercial Tax, Madhya Pradesh, Indore, and to allow exemption to the trading division of the assessee-company for the remaining turnover of ₹ 27,48,403 based on the duplicate portion of C form. The assessee also prayed that respondent No. 2 be directed to refund the entire amount of tax to ₹ 2,91,719 deposited by the assessee on receipt of demand notice. The assessee is a company registered under the provisions of the Indian Companies Act, 1956, having registered office at 9/3, North Rajmohalla, Indore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002 in Central Sales Tax Act, C form is mandatory even in cases of turnover of tax-paid material and after deducting a turnover of ₹ 4,17,039, which took place up to May 12, 2002 determined a taxable turnover of ₹ 42,00,001 and levied a tax of ₹ 4,20,000 at of 10 per cent. Against the order dated January 9, 2006 of the assessing officer in the trading division, the assessee preferred an appeal before the appellate authority under section 9(2) of the Central Sales Tax Act, 1956 read with section 61(1) of the Madhya Pradesh Commercial Tax Act, 1994 and submitted the duplicated C form for a turnover of ₹ 8,64,619. The Appellant Commissioner vide order dated March 5, 2007, allowed the appeal and partially reduced the taxable turnover of the assessee by a sum of ₹ 8,64,619 and granted a tax relief of ₹ 86,462. However, the learned Appellate Commissioner rejected the request of the assessee to grant exemption from the remaining amount of taxable turnover for want of C form. The learned appellate authority also recorded this fact that the assessee has presented the declaration in C form in original in its manufacturing division and has presented the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaf is named as counterfoil . It is submitted by learned counsel for the assessee that the said nomenclature is only for administrative convenience to enable the assessing officer to differentiate between the three copies though all the three copies are original. Section 13(1) of the Central Sales Tax Act, 1956 empowers the Central Government to make rules for the transaction covered in the course of inter-State trade or commerce and section 13(3) and (4) of the Central Act empowers the State Government to make rules, not inconsistent with the provisions of the Central Act to carry out the purposes of the Central Act by that State Government and since as per the scheme of the Central Act the State Governments are authorized to control and regulate the collection of Central sales tax within their territory, they are authorized to frame necessary rules in this regard. It is submitted that under sub-sections (3) and (4) of section 13 of the Central Sales Tax Act, 1956, the State of Madhya Pradesh has framed Madhya Pradesh Sales Tax (Central) Rules, 1957 and therefore, the rules framed by the State of Madhya Pradesh are subordinate rules and cannot supersede the scheme of the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority; or (b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed from duly filled and signed by a duly authorised officer of the Government: Provided that the declaration referred to in clause (a) is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit.' Rule 12(1) of the Central Rules says: '12(1). The declaration and the certificate referred to in sub-section (4) of section 8 shall be in forms C and D respectively.' It would, thus, appear that in order to obtain the benefit of section 8(1) of the Central Act, the dealer has to comply with the provisions of section 8(4) thereof by filing a declaration in form C in terms of rule 12(1) of the Central Rules. In the present case, though the assessee did not file the 'original' part of the form C, it did file the 'duplicate' part of the form. As pointed out earlier, form C consists of three parts: 'original', 'duplicate' and 'counterfoil'. All the three part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Revenue that the form C was available with the Department in the matter of manufacturing division, the benefit of the same can be extended in respect of another division (trading division). She submitted that the apex court has held the requirement of submitting the original C form and, therefore, the order passed by the revisional authority is legal and proper and prayed for dismissal of the writ petition. We have heard the arguments of the learned counsel for the parties and perused the record of the case and also perused the Division Bench judgment of this court in the case of Manganese Ore (India) Ltd. v. Commissioner of Sales Tax, Madhya Pradesh [1991] 83 STC 116 (MP) and decision of the apex court in the case of India Agencies (Regd.) v. Additional Commissioner of Commercial Taxes, Bangalore [2005] 139 STC 329 (SC); [2005] 4 RC 124; [2005] 6 STJ 256 (SC). In the case of India Agencies (Regd.) v. Additional Commissioner of Commercial Taxes, Bangalore [2005] 139 STC 329 (SC); [2005] 4 RC 124; [2005] 6 STJ 256 (SC), the entire of 279 original C form was misplaced and therefore, the appellant therein could file only the portions of C form marked as duplicate . Paras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f C forms is that there should not be suppression of any inter-State sales by a selling dealer and evasion of tax to the State from where the actual sales are effected. Secondly, the purchasing dealer also cannot suppress such purchases once he issues C form to the selling dealer. Since the dealer should issue C form has to maintain a detailed account of such C forms obtained from the Department prescribed under the States taxation law. The C form is a declaration to be issued only by the sales tax authorities of concerned States. By issuing declaration in C form the purchasing dealer would be benefited as he is entitled to purchase goods by paying only concessional rate of tax of four per cent. as prescribed by the concerned State of purchasing dealer otherwise the purchasing dealer has to pay tax at a higher rate besides additional taxes on such sales effected within the State where selling dealer is situated. ... 22. The case of Manganese Ore (India) Ltd. v. Commissioner of Sales Tax, Madhya Pradesh [1991] 83 STC 116 (MP) was relied on by learned counsel for the appellant. In the above case, in order to obtain the benefit of section 8(1) of the Central Sales Tax Act, it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of marketing division of the assessee and this fact is admitted by the Department in their return, the case of the assessee is fully covered by the Division Bench of this court in the case of Manganese Ore (India) Ltd. v. Commissioner of Sales Tax [1991] 83 STC 116 (MP) which is also approved by the apex court. In view of the aforesaid, we are of the view that the assessee is entitled to the concessional rate of tax as if he had filed the original parts of declaration in C form. For the abovementioned reasons, the impugned order dated January 2, 2008 (annexure P/1), rejecting the request of the assessee to consider the duplicate C form is hereby quashed. The learned revisional authority is directed to verify the duplicate C form in question of trading division of the assessee from the original C form, which has been presented by the assessee in its manufacturing division and after verifying the same, if it is found that same are as per originals then, exemption to the trading division of the assessee for the remaining turnover of ₹ 27,48,403 be granted accordingly. After completing the whole exercise, if it is found that assessee is also entitled for refund of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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