Court allows petition, quashes order, remits for rehearing. Petitioner can reopen assessment for "sufficient cause." Assessing authority has power to extend time for C forms, reopen assessments.

The court allowed the writ petition, quashed the impugned order, and remitted the matter for rehearing and disposal in accordance with the law. The petitioner, a public limited company, was permitted to seek reopening of the final assessment based on "sufficient cause." The court clarified that the assessing authority has the inherent power to extend the time for filing C forms, including the ability to reopen assessments if necessary. The Full Bench decision emphasized that the assessing authority's power is not limited by the absence of an express provision for reopening assessments.

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Issues Involved:
1. Reopening of assessment to admit C forms.
2. Interpretation of Section 8(4) of the Central Sales Tax Act, 1956, and Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957.
3. Authority of assessing officer to extend the time for filing C forms.

Summary:

1. Reopening of assessment to admit C forms:
The petitioner, a public limited company, sought to quash the proceedings of the respondent and requested reconsideration of its application u/r 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957, read with section 55 of the Tamil Nadu General Sales Tax Act, 1959. The petitioner was assessed for the year 1987-88 and a demand for Rs. 1,30,899 was made. The petitioner argued that the failure to present C forms was due to "sufficient cause" and requested reopening of the assessment to admit these forms.

2. Interpretation of Section 8(4) of the Central Sales Tax Act, 1956, and Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957:
Section 8(4) of the Central Sales Tax Act, 1956, allows for the furnishing of C forms within the prescribed time or further time permitted by the authority for sufficient cause. Rule 12(7) of the Rules states that the declaration in form C shall be furnished up to the time of assessment by the first assessing authority. The court noted that the rule's proviso imposes a stricter requirement than the statute, which merely requires "sufficient cause" without the need for the assessee to prove prevention from filing on time. The Full Bench in State of Tamil Nadu v. Arulmurugan and Company held that the rule cannot prevail over the statute and is ultra vires to the extent it contradicts the statutory provision.

3. Authority of assessing officer to extend the time for filing C forms:
The court observed that the assessing authority has the power to permit the filing of C forms even after the assessment if there is "sufficient cause." This power is inherent and does not require an express provision for reopening the assessment. The Full Bench decision clarified that the assessing authority's power to allow further time for filing C forms includes the power to reopen assessments if necessary. The court concluded that the assessing authority erred in stating there was no provision to reopen the assessment and remitted the matter for reconsideration.

Conclusion:
The writ petition was allowed, the impugned order was quashed, and the matter was remitted to the respondent for rehearing and disposal in accordance with law. The petitioner is entitled to seek reopening of the final assessment based on "sufficient cause."

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