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TMI Blog2017 (6) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... ry as against when they were despatched, cannot be the reason for rejecting the Form 'C' declarations. Circular dated 20.10.2015 would show that the Revenue itself has taken a view that technicalities, to which we have made a reference above, ought not to come in the way of acceptance of declaration forms. A case in point is, when, goods are despatched on the last day of the last quarter of a financial year and, they are recorded by the buyer in his record, based on the date of delivery or receipt and declaration is issued accordingly. In such circumstance, could it be said that the seller would not be given the benefit of the Form C declaration. Appeal allowed - decided in favor of appellant. - T. C. No. 1 of 2017 - - - Dated:- 26-4-2017 - Rajiv Shakdher And R. Suresh Kumar, JJ. For Petitioner : Mr.N.Prasad For Respondent : Mr.S.Kanmani Annamalai ORDER ( Order of the Court was delivered by Rajiv Shakdher, J. ) 1.Issue notice. Mr.S.Kanmani Annamalai, learned Additional Government Pleader (Taxes) accepts notice on behalf of the respondent. With the consent of the learned counsels for the parties, the matter is taken up for hearing and final disposal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, we intend to deal with this aspect of the matter in the latter part of our judgment. 3.Presently, in order to adjudicate upon the instant case, the following broad facts are required to be noticed: 3.1.The petitioner/ Assessee is a manufacturer of computers, laptops and peripherals. In respect of the assessment year in issue, ie., Assessment Year 2010-2011, it was assessed to tax on total and taxable turnover of ₹ 388,78,78,419/- and ₹ 208,02,20,270/-, respectively, albeit, under the Central Sales Tax Act, 1956 (in short, the 1956 Act). 3.2.The Assessing Officer vide order dated 30.12.2013, levied a tax at the rate of 12.5%, as against concessional rate of 2% in respect of inter-state sales which were, according to him, not covered by the Form 'C' Declarations. The Assessing Officer, as it appears from the record, refused to extend the benefit of concessional rate of tax of 2% to the petitioner/Assessee for the reason that the Form C declaration covered more than one quarter, that is, recorded sales for the month in which delivery of goods had been made. Thus, the instant matter centres around this sole issue. 4.The petitioner/ Assessee being aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in every quarter in terms of second proviso and that it shall be necessary to furnish separate declarations for the same transaction of sale if there are different delivery dates spread over different quarters. Under Section 8(4) of the Central Sales Tax Act, 1956, all the particulars must be filled up by the purchasing dealer before the original is produced before the Assessing Officer for grant of concessional rate of tax. If there is any mistake, the selling dealer / appellant may get it corrected by the purchasing dealer and if he had already filed it, he may pray for getting a return thereof from the Assessing Officer for getting it properly so corrected. Even though many opportunities were granted to them to obtain and produce revised and rectified declarations after making necessary corrections in the declaration Forms given by the purchasing dealers, the appellants are not in a position to produce the revised declaration C Forms after rectification even after a period of nearly 5 years. A perusal of the particulars contained in Annexure L filed by the Authorised Representative for the appellant, it is nothing but a statement signed by the purchasing dealer Tvl.Savex Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in so far as sub-rule(1) of Rule 12 of the 1957 Rules was concerned, it envisaged two scenarios, as encapsulated by the 2nd and 3rd proviso. First, where a single declaration could be filed to cover all transactions of sale, which took place in a quarter of a given financial year, between two dealers. Second, where, in a given sale transaction, the delivery of goods is spread over different quarters in a financial year or, even to different financial years. 6.2.In this situation, according to the learned counsel, the third proviso to Rule 12(1) envisages furnishing separate declarations, in respect of goods delivered in each quarter of a financial year, or in different financial years. In other words, according to Mr.Prasad, the declarations can capture sale transactions based on dates of delivery. 7.Mr.Prasad, further contends that under sub-rule (7) of Rule 12, the time limit fixed for furnishing the declaration in Form 'C' was three months from the end of the period, to which, the declaration is relatable. 7.1.Learned counsel submits that in so far as the petitioner/ Assessee is concerned, even, if, it is held that, it does not fall in either of the two pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viso, has the power to accept the delayed declarations, as long as they are genuine and, it could be established that the goods were despatched to the registered dealers located in another State and, the same are properly accounted for by the dealers in the other State(s). 9.1.As a matter of fact, Mr.Annamalai submits that the situation which arose in the instant case, is contemplated in the Circular dated 20.10.2015. Having said so, learned counsel submits that the Circular is prospective in nature and therefore, cannot apply to the facts of this case. 10.We have heard the learned counsels appearing for the parties and perused the record. 11.Quite clearly, the only issue, which arises for consideration is: whether the Form 'C' declarations filed by the petitioner/ Assessee, could be rejected, only on the ground that they capture the sale transactions relatable to the date, when the delivery of goods took place, as against, when they were despatched. 12.In terms of provisions of Section 8 of the 1956 Act, the petitioner/ Assessee was entitled to a concessional rate of tax, only if, sale was effected to a registered dealer, in another State and requisite Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same tow dealers. Provided also that where, in the case of any transaction sale, the delivery of goods is spread over to different quarters in a financial year or of different financial years, it shall be necessary to furnish a separate declaration or certificate in respect of goods delivered in each quarter of a financial year. 3.As per the provisos, it is necessary to furnish the declaration forms in respect of goods delivered in each quarter of a financial year. In reality, as a trade practice, it may happen that goods dispatched on last days of a quarter/ calendar month are received in the first part of next quarter/ calendar month and the other state dealer-buyer/ consignee may mention the date of receipt/ delivery of goods in the declaration form as against date of sales invoice or date of dispatch of goods, which need not be rejected outright by the assessing officers. 4.Declaration forms are meant to ensure that the goods are dispatched to registered dealers in other state and the same is properly accounted for by the dealers in other states. If this principal objective is satisfied, the purpose for which declaration forms are intended need not be negated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the purchasing dealer; or duplicate of such declaration / Certificate where the original has been lost. The assessing authority may in his discretion also direct the selling dealer to produce for inspection the portion of the declaration / Certificate marked 'Duplicate'. Notwithstanding anything contained in the foregoing paragraph and in Rule 5, the selling dealer may, instead of attaching the Form of declaration / Certificate to the return in Form 1 keep it in his custody subject to the condition that he submits all the Forms of declaration / Certificate relating to the year at any time before the final assessment of the accounts of that year. (Emphasis is ours) 16. Clearly, if Rule 10(2) of the T.N.Rules is applied, the declaration forms could have been filed at any time before the final assessment. Therefore, it is not as if, because there was delay, the petitioner/Assessee could have been deprived of its right to be assessed at a concessional rate of tax. 16.1. These aspects were lost sight of by the Tribunal. 16.2. Besides the above, Mr.Prasad, is right in his contention that the Tribunal did not examine the alternative plea of the petitioner/As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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