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TMI Blog2009 (8) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the applicant company can be denied the benefit of the concessional rate of tax when the inter-state sales have been affected to the purchaser who represented itself as a Government Department entitled to purchase goods at concessional rate of tax and has also issued a certificate to the said effect? D- Whether the Tribunal as well as the appellate authority was legally justified in rejecting the applicant's claim of inter-state sales made at concessional rate of tax in absence of declaration Form C? 3. Heard learned counsel for the applicant and learned Standing Counsel. 4. During the course of argument, at the very outset, learned counsel for the applicant submitted that he is not pressing question no. D and only pressing question nos. A and C. 5. During the years under consideration, for the assessment year 1996-97 and 1997-98 the applicant had sold goods to Haryana Roadways for ₹ 9,94,243/- and ₹ 15,86,152/-respectively. In respect of aforesaid sales, Haryana Roadways had furnished Form D and claimed the benefit of concessional rate of tax as contemplated under Section 8(1) of the Central Sales Tax Act (hereinafter referred to as the "Central Act"). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepting that the Haryana Roadways come within the purview of Government and the form being genuine, the applicant had accepted the form under the bonafide belief. Therefore, in any view of the matter, the claim of concessional rate of tax cannot be denied to the applicant and in case, if there is any doubt whether the Haryana Roadways is not the Department of Haryana Government or it does not fall within the purview of Government, the necessary action may be taken against the Haryana Roadways for issuing Form D. 8. In support of the contention he relied upon the decisions of this Court in the case of S/s. Jai Bharat Silicate Sahkari Samiti Versus Commissioner of Sales Tax, reported in 1988 U.P.T.C.-565 and M/s. Auto Sales, Allahabad vs. Commissioner of Sales Tax, reported in 1991 U.P.T.C.-338. 9. Learned Standing Counsel submitted that in one of the case, the Apex Court has observed that Haryana Roadways is an undertaking and being an undertaking, it does not fall within the purview of Government under Section 8 (1) of the Central Act and, therefore, the Haryana Roadways was not entitled to issue Form D. Therefore, the benefit against such Form D cannot be given to the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Auto Sales, Allahabad v. Commissioner of Sales Tax, reported in 1991 U.P.T.C.-338, the selling dealer sold the goods to Nagar Mahapalika, Varanasi. The Nagar Mahapalika, Varanasi issued Form D to avail the benefit of concessional rate of tax. It was found that Nagar Mahapalika was not entitled to issue Form D under Section 3-G of the U.P. Sales Tax Act and, therefore, the claim of benefit of concessional rate of tax has been disallowed. The matter came up for consideration before this Court. This Court held as follows: "It will not be out of place to mention here that 3-D Forms provided under the Sales Tax Act are issued by the Sales Tax department. These forms are not obtainable from the market or the assessee cannot purchase these forms from any other firm or agency. It was the duty of the Sales Tax Officer to see whether the Nagar Mahapalika, Varanasi could have been issued Form 3-D under Section 3-G of the Sales Tax Act or not. If Forms 3-D have been issued to the Nagar Mahapalika, Varanasi by the Sales Tax Authority then the purchases made against these forms by the Nagar Mahapalika cannot be said to be against any provisions of law. The assessee is not bound to see as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be in Forms 'C' and 'D' respectively: Provided that Form 'C' in force before the commencement of the Central Sales Tax (Registration and Turnover) (Amendment) Rules, 1974, or before the commencement of the Central Sales Tax (Registration and Turnover) (Amendment) Rules, 1976, may also be used up to the 31st December, 1980 with suitable modifications: Provided further that no single declaration or certificate shall cover more than one transaction of sale, except in cases where the total amount of sale made in a financial year, covered by one declaration or certificate, is equal to or less than Rupees one lakh or such other amount as the Central Government may, by a general order, notify in the Official Gazettee : Provided also that where, in the case of any transaction of sale, the delivery of goods is spread over to different financial years it shall be necessary to furnish a separate declaration or certificate in respect of goods so delivered in each financial year." 17. Rule 12 (1) provides the declaration and the certificate referred to in subsection (4) of Section 8 shall be in Forms 'C' and 'D' respectively. 18. In my view the order of the Tribunal is not susta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f tax against such Form D is unjustified. It is not expected from the selling dealer while accepting the form from the purchaser to make an enquiry whether the Haryana Roadways was the Department of Government of Haryana Roadways or not particularly when they had issued the certificates in this regard. In case, if the Trade Tax Authority of U.P. is of the view that the Haryana Roadways could not issue Form D, the necessary action can be taken against the Haryana Roadways for issuing the wrong certificates but on this ground the claim of concessional rate of tax cannot be denied to the applicant. 21. There is no dispute that the sales were made to Haryana Roadways and in the bills concessional rate of tax has been charged. The Haryana Roadways has issued Form 3-D which have been obtained by them from their assessing authorities. The said Form 3-D was not found forged and non-genuine. The question for consideration is whether the benefit of concessional rate of tax against Form 3-D issued by the Haryana Roadways can be disallowed. The Tribunal and all the authorities have denied the benefit of concessional rate of tax merely on the ground that Haryana Roadways was not the department ..... X X X X Extracts X X X X X X X X Extracts X X X X
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