C declaration defects must be curable before rejection where denial affects concessional tax treatment.

Rejection of C declaration forms under section 8(4) of the Central Sales Tax Act was held to be quasi-judicial and could not be made arbitrarily. Although the then applicable M.P. sales tax law did not expressly require notice to cure defects, the assessing authority had an implied duty to hear the dealer before depriving it of the concessional tax rate. That opportunity included a fair chance to remove inadvertent, curable defects in the C forms to the authority's satisfaction. A technical approach that barred rectification of such mistakes was rejected, and the assessee was entitled to an to cure the defects before rejection.

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Issues: Whether, under section 8(4) of the Central Sales Tax Act, 1956, the assessing authority was required to afford the assessee an opportunity to cure defects noticed in the C declaration forms before rejecting them.

Analysis: At the relevant time, neither the M.P. General Sales Tax Act, 1958 nor the rules made thereunder contained any express provision requiring the assessing authority to permit a dealer to supply omissions or remove defects before rejecting a declaration under section 8(4) of the Central Sales Tax Act, 1956. Even so, rejection of the declarations would deprive the dealer of the concessional rate of tax and therefore could not be made arbitrarily. The act of rejecting the declaration is quasi-judicial in nature and carries an implied requirement of hearing the dealer. That opportunity is not an empty formality and includes a fair chance to remove inadvertent defects to the satisfaction of the assessing authority. A technical construction that bars rectification of curable mistakes is not warranted.

Conclusion: The assessing authority was bound to give the assessee an opportunity to cure the defects in the C forms before rejecting them, and the contrary view was rejected.

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