Nomination of a branch as head office under sales tax rules cannot be refused once statutory conditions are met

Rule 51 under the Delhi Sales Tax framework allowed a dealer with more than one place of business in Delhi to nominate one branch as the head office for procedural purposes. The nominated head office could be used for centralized filing of applications, returns and statements, subject to the dealer satisfying the statutory condition of multiple business premises and making a valid nomination under the rule. Once those conditions were met, the revenue had no basis to refuse recognition of the nominated head office, and any objection to that nomination was not sustainable.

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Issues: Whether a dealer having more than one place of business in Delhi was entitled to nominate one branch as the head office for the purposes of the Delhi Sales Tax Act, 1975 and the Delhi Sales Tax Rules, 1975, and whether the revenue could object to such nomination.

Analysis: Rule 51 contemplated nomination of one of the dealer's branches as the head office where the dealer had more than one place of business in Delhi. The nomination operated for the purposes of the rules and enabled centralized filing of applications, returns and statements through the head office for administrative convenience. Once the statutory condition of having more than one place of business was satisfied and the nomination was made in accordance with the rule, the revenue had no basis to refuse recognition of the nominated head office.

Conclusion: The nomination could not be objected to by the revenue, and the impugned letter was liable to be quashed in favour of the petitioner.

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