C forms requirement controlled inter-State sales tax exemption; reassessment to recover escaped turnover remained valid despite a wrong section reference.

Inter-State sales tax exemption under the Central Sales Tax Act could not be claimed without furnishing the required C forms, and a grant of exemption despite that omission created escaped turnover liable to reassessment under the Rajasthan Sales Tax Act, 1994 within limitation. The reassessment was not invalid merely because the notice referred to section 12 instead of section 17, since a wrong statutory reference does not vitiate an otherwise sustainable action. An incentive scheme relied on by the assessee could not override the mandatory requirement to furnish C forms. The challenge to withdrawal of exemption and recovery of tax therefore failed.

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Issues: Whether reassessment to withdraw sales tax exemption and recover tax on inter-State sales was valid when the assessee had not furnished the required C forms, and whether the assessment was vitiated because the notice referred to section 12 instead of section 17 of the Rajasthan Sales Tax Act, 1994.

Analysis: Exemption under the Central Sales Tax Act could not be availed without furnishing C forms in respect of inter-State sales. Where exemption had been granted despite non-compliance with this mandatory requirement, the resulting tax liability constituted escaped turnover and could be brought to tax by reassessment within limitation under the Rajasthan Sales Tax Act, 1994. The mere fact that the assessing authority acted under section 12 and not under section 17 did not invalidate the action, because mention of a wrong provision does not vitiate an otherwise sustainable assessment order. The incentive scheme relied upon by the assessee operated in a different field and could not override the statutory requirement of furnishing C forms.

Conclusion: The reassessment was valid, and the Revenue was entitled to recover the tax. The assessee's challenge to the reassessment and the withdrawal of exemption failed.

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