1984 (7) TMI 338 - HC - VAT and Sales Tax

High Court allows acceptance of C forms for inter-State sales at appellate stage

The Rajasthan High Court ruled in favor of the assessee, allowing the acceptance of C forms for inter-State sales at the appellate stage. The Court held ... - Issues:Interpretation of the Rajasthan Sales Tax Act regarding the acceptance of C forms for inter-State sales at the first appellate stage.Analysis:The judgment of the Rajasthan High Court addressed a reference under section 15 of the Rajasthan Sales Tax Act regarding the acceptance of C forms for inter-State sales at the first appellate stage. The case involved a dispute where the assessing authority imposed varying tax rates on different sales based on the presence or absence of C forms. The appellant was allowed to produce the declaration under form C at the Deputy Commissioner (Appeals) stage, leading to a revision petition by the Department before the Board of Revenue. The Board of Revenue upheld the decision of the Deputy Commissioner, prompting the Department to file an application for reference to the High Court.The High Court heard arguments from both the Department and the appellant's representatives. The Department relied on previous court decisions emphasizing strict compliance with the mandatory production of C forms before the assessing authority. They argued that any hardship caused by the requirement should not permit the production of C forms at the appellate stage. The appellant's representatives cited contrary views from various High Courts, asserting that the powers of the appellate authority should extend to allowing the production of declarations like C forms even at the appellate stage.The High Court considered the arguments and reviewed multiple decisions from different High Courts. It noted that while some courts had held a strict view on the timing of C form submissions, others had allowed flexibility for filing at the appellate stage if sufficient cause was shown. Ultimately, the High Court sided with the view that the powers of the appellate authority should align with those of the assessing authority. Therefore, the failure to file C forms at the assessment stage before the assessing authority was not fatal, and filing at the appellate stage after showing sufficient cause was permissible.In the specific case before the High Court, it was found that the Deputy Commissioner (Appeals) had correctly admitted the declaration form at the appellate stage, deemed it genuine, and granted the assessee the benefit of concession. Consequently, the High Court ruled in favor of the assessee and against the Department, affirming the decision of the Deputy Commissioner (Appeals) to accept the C form at the appellate stage.