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TMI Blog2018 (11) TMI 1622X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Sales Tax Act or the Rules do not authorize the concerned authority (or the form issuing authority) to resort to cancellation retrospectively, is one in rem. If the Delhi VAT authorities are permitted to hair split and distinguish the source of its power as one exercised by an authority outside Delhi or that the C Form in the decision was issued by a purchasing dealer and not a selling dealer, the import of the decision would be completely undermined. The submission of the counsel for the Delhi VAT authorities that the Haryana authorities had the power or somehow could retrospectively cancel the C Forms, is rejected. If it is stated that no power exists to cancel a C Form retrospectively, no authority at least in Delhi can give eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des other grounds, the petitioner urges that the cancellation of C Forms and the effect given to it was not proceeded by any fair notice or opportunity and secondly, that the cancellation of the C Forms and to the extent that such order was given effect to was without authority of law; in this regard, reliance is placed upon the judgment of this court in Jain Manufacturing (India) Pvt. Ltd. v. The Commissioner of Value Added Tax Anr., W.P.(C)No.1358/2016 (decided on 01.06.2016). Ld. counsel for the respondents sought to distinguish the decision in Jain Manufacturing. He argued on behalf of the Revenue that the cancellation of the C Form, unlike in Jain Manufacturing, was not by the Delhi VAT Authorities but rather by the Haryana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been validly issued, much less retrospectively. The only circumstance perhaps that could lead to the cancellation of a C Form is the failure by the issuing authority to notice the cancellation of the purchasing dealer's CST registration previous to the date of the sale. That would be a case of a purchasing dealer obtaining a C Form by fraudulent means concealing the fact of cancellation of his CST registration. The issuance of a C Form in such instance would be void ab initio since it would not satisfy the requirement of Section 8 (1) of the CST Act read with Section 7 (4) thereof. The practical effect of cancellation of C Forms 26. It was submitted by Mr Narayan that there would be a practical difficulty in the DT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the registration and, consequently of the C-Form is sought to be done retrospectively, it would adversely affect the rights of bonafide sellers in other states who proceeded on the basis of the existence of valid CST registration of the purchasing dealer on the date of the inter-se sale. That outcome is not contemplated by the CST Act and the Rules thereunder. The Revenue s argument that since it did not pass an order cancelling the C Form, like in Jain Manufacturing but rather that a third party, outside the jurisdiction of this court, did so, is unpersuasive. As long as the Central enactment is interpreted in a particular manner, by a High Court empowered to do so, the question of the authority, wherever it is located, possessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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