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TMI Blog2022 (9) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... iability, including shortfall of C Forms in cases of defaulting dealers, to be made by a dealer either in cash or by way of security, whenever called upon by the Corporation, pending subsistence of the agreement. There is no doubt that a dealer can be called upon to furnish a Bank Guarantee in any exigency as contemplated by the Corporation, and the dealers would have no choice but to comply - the mandamus as sought for by the petitioners is not liable to be granted and the prayer is rejected. The dealers may, if they so desire, make representations to the Corporation setting out the track record of both, their history with the Corporation, as well as the tax authorities. Upon hearing the dealer concerned and considering the represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of award of dealership, are required to enter into agreements for supply of Petrol (Motor Spirit) / High Speed Diesel (HSD). The supply of Petrol and HSD (in short and collectively referred to as 'fuel') is from outlets situated in Tamil Nadu, to the dealers in Pondicherry, thus, constituting an interstate sale. 4. The dealers offer to tax the turnover from local sales of fuel in their outlets, and any default on their part, either in filing of returns or payment of tax or other levies or in effecting compliances under the Puducherry Value Added Taxes Act, 2007 (in short 'PVAT Act') would result in action to be taken as against such dealers. 5.Section 43 of the PVAT Act provides for the withholding of statutory forms a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to supply 'C' forms to the dealers for onward transmission to IOCL. 9.Those Writ Petitions have come to be disposed by order dated 07.04.2016, where, at paragraphs 98 and 99, the Division Bench holds as follows: 98. In Commissioner of Sales Tax v. Shri Krishna Engineering Co. [(2005) 139 STC 457], the Supreme Court was concerned with the validity of Rule 8(4)(c) of the Delhi Sales Tax Rules, 1975. This Rule empowered the appropriate Assessing Authority to withhold, after affording an opportunity and for reasons to be recorded in writing, the declaration forms, if the applicant for the declaration forms had defaulted in furnishing any return or defaulted in payment of tax or penalty or he had been found to have some adverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the considered view that none of the grounds of challenge could be sustained. 10.Since in those cases, demands had been raised as against the defaulting dealers, the Bench said that the only remedy available to IOCL would be to approach the Civil Court by way of suit. 11.A sample agreement between a dealer and IOCL has been placed from my appreciation and my attention drawn to the offending clause, clause 41(a) that reads as follows: 41(a) - The Dealer shall, whenever called upon by the Corporation to do so, lodge with the Corporation deposits of such sums of money as may be stipulated by the Corporation from time to time as security for the due fulfillment of his obligation and undertakings hereunder and for securing se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejected. 14. One thing remains. It is the submission of the learned senior counsel for the learned counsel for the petitioner that the condition imposed has greatly prejudiced the dealers, making substantial inroads not just into their profits but their working capital as well. The instances of defaults by dealers are few and far between and hence all dealers should not have to suffer for the default of the few. There is some merit in this submission. 15.Thus, dealers may, if they so desire, make representations to the Corporation setting out the track record of both, their history with the Corporation, as well as the tax authorities. Upon hearing the dealer concerned and considering the representation filed, the Corporation may, at i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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