Contractor entitled to delivery notes and C forms; non-payment of tax not a valid ground for withholding.

The court held that a contractor executing works contracts qualifies as a "dealer" entitled to receive delivery notes and C forms. The court emphasized that non-payment or nominal payment of tax for previous years is not a valid ground for withholding these documents. The assessing authority was directed to issue the requested C forms and delivery notes to the petitioner, with the writ petition being allowed with no order as to costs.

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Issues Involved:
1. Entitlement of a contractor executing works contracts to receive "delivery notes" and "C forms."
2. Grounds for withholding or non-issuing of delivery notes and C forms by the assessing authority.

Summary:

Issue 1: Entitlement of a contractor executing works contracts to receive "delivery notes" and "C forms."
The petitioner, a private limited company registered under the Companies Act, 1956, and a registered dealer under the Kerala General Sales Tax Act, 1963, and Central Sales Tax Act, 1956, sought the issuance of C forms and delivery notes. The respondents refused, arguing that the petitioner was engaged in works contracts and had not paid sufficient tax. The court examined whether a contractor executing works contracts qualifies as a "dealer" entitled to these documents. The Constitution (Forty-sixth Amendment) Act, 1982, and subsequent amendments to the Kerala General Sales Tax Act, 1963, clarified that a person executing works contracts is a "dealer" and the transfer of property in such contracts is a "sale." Thus, the petitioner is entitled to all rights and benefits, including delivery notes and C forms.

Issue 2: Grounds for withholding or non-issuing of delivery notes and C forms by the assessing authority.
The court noted that delivery notes are essential for business transactions and must be issued by the assessing authority when demanded by a dealer. Similarly, C forms are required for inter-State trade and must be issued to registered dealers under the Central Sales Tax Act. The court emphasized that non-payment or nominal payment of tax for previous years is not a valid ground for withholding these documents. The right to carry on business is a fundamental right, and while the State can impose reasonable restrictions, withholding delivery notes and C forms is not intended to restrict trade but to regulate it. The court cited various judgments supporting the view that the assessing authority cannot refuse these documents based on tax arrears or misuse concerns.

Conclusion:
The court directed the first respondent to issue C forms and delivery notes to the petitioner as requested in exhibit P3 application, making the interim order absolute. The writ petition was allowed with no order as to costs.

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