1982 (11) TMI 143 - HC - VAT and Sales Tax

Appellate authorities can consider C forms at appeal stage; State Government's revisions dismissed.

State of Tamil Nadu Versus Arulmurugan and Company

The Full Bench concluded that appellate authorities have the power to entertain C forms filed at the appellate stage and allow further time for filing ... - Issues Involved:1. Whether the appellate authority can entertain C form declarations filed by a registered dealer at the appellate stage.2. Interpretation of Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, and its proviso in relation to the powers of the appellate authority.3. The validity of the Tribunal's decision to remand cases to the assessing authority for considering C forms filed at the appellate stage.4. The jurisdiction and powers of the appellate authority under the Central Sales Tax Act, 1956, and Tamil Nadu General Sales Tax Act, 1959.Detailed Analysis:1. Whether the appellate authority can entertain C form declarations filed by a registered dealer at the appellate stage:The Full Bench was tasked with determining whether an appellate authority can entertain C form declarations filed at the appellate stage under the Central Sales Tax Act, 1956, or the Rules made thereunder. The key statutory provision under consideration was Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, which mandates that C forms shall be furnished 'up to the time of assessment by the first assessing authority.' The proviso to Rule 12(7) allows further time for filing C forms if the prescribed authority is satisfied that sufficient cause prevented timely filing.2. Interpretation of Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, and its proviso in relation to the powers of the appellate authority:The court examined Rule 12(7) and its proviso, noting that the 'prescribed authority' mentioned is the first assessing authority. The Government Pleader argued that the appellate authority cannot entertain C forms as it is not the prescribed authority. The court, however, held that the appellate authority has the same powers as the assessing authority, as an appeal is essentially a continuation of the assessment process. The court emphasized that the appellate authority's powers are conterminous with those of the assessing authority, enabling it to allow further time for filing C forms.3. The validity of the Tribunal's decision to remand cases to the assessing authority for considering C forms filed at the appellate stage:The court upheld the Tribunal's decision to remand cases to the assessing authority for considering C forms filed at the appellate stage. The Tribunal's action was deemed proper, as it could achieve indirectly what it could do directly. The court noted that the Tribunal has the power to set aside assessments and direct the assessing authority to re-do the assessment, thereby allowing the consideration of C forms filed late.4. The jurisdiction and powers of the appellate authority under the Central Sales Tax Act, 1956, and Tamil Nadu General Sales Tax Act, 1959:The court reiterated that the appellate authority under the Central Sales Tax Act, 1956, and Tamil Nadu General Sales Tax Act, 1959, has wide powers similar to those of the assessing authority. The appellate authority can confirm, reduce, enhance, annul, or set aside assessments and direct fresh assessments. The court referenced Supreme Court rulings, including McMillan's case, which established that appellate authorities in tax matters have the same powers as the original assessing authorities.Conclusion:The Full Bench concluded that appellate authorities have the power to entertain C forms filed at the appellate stage and allow further time for filing such forms if sufficient cause is shown. The Tribunal's decisions to remand cases for considering C forms were upheld, and the revisions filed by the State Government were dismissed. The court also declared the proviso to Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, as ultra vires to the extent it conflicts with the proviso to Section 8(4) of the Central Sales Tax Act, 1956. The court granted a certificate of fitness for appeal to the Supreme Court due to the importance of the issues involved.