2011 (3) TMI 1536 - HC - VAT and Sales Tax

High Court decision on trade tax revision: Appeal timeline set, forms C & F, tax liability, time extension

TATAMOTORS LIMITED Versus COMMISSIONER, COMMERCIAL TAXES, UP., LUCKNOW

The High Court partly allowed the trade tax revision, instructing the first appellate authority to decide on the appeal by a specified date. The judgment ... Whether there is no illegality or infirmity in the impugned order, as the revisionist has not submitted the required forms well within the time? Held that:- Considering the peculiar facts and circumstances of the case, the impugned order passed by the Tribunal dated March 4, 2011, is modified to the extent that if the revisionist deposits 10 per cent of the total demanded tax for the assessment year 2007-08 latest by March 31, 2011, ninety percent of the demanded tax shall be kept in abeyance till disposal of appeal. The revisionist shall furnish security of the stayed amount within 30 days to the satisfaction of the assessing authority. It is further provided that the deposited amount shall not be adjusted against any other head. Trade tax revision is partly allowed Issues: Assessment proceedings under Central Sales Tax Act for the assessment year 2007-08, non-acceptance of forms C and F, imposition of tax liability, appeal against tax demand, extension of time for filing forms, legal provisions for filing forms beyond prescribed time.In this case, the revisionist, a public limited company manufacturing motor vehicles in Lucknow, faced assessment proceedings for the assessment year 2007-08 under the Central Sales Tax Act. The revisionist encountered challenges in obtaining and submitting forms C and forms F within the stipulated time due to difficulties faced by branch offices and consignment agents outside the State of U.P. The assessing authority imposed a tax liability of Rs. 67,03,06,682 on the revisionist, treating certain sales as local due to non-filing of forms. The revisionist contended that the demand arose due to non-acceptance of forms C and F, despite filing an application for an extension of time. The Additional Commissioner granted a partial stay of the tax amount, which was further modified by the Tribunal to allow 10% additional stay.The revisionist argued that the Act and Rules permit filing forms beyond the prescribed time if sufficient cause is shown, as clarified by the Commissioner of Commercial Taxes. Conversely, the standing counsel contended that the impugned order was not illegal as the revisionist failed to submit the required forms within the specified time. The Tribunal modified its order, requiring the revisionist to deposit 10% of the demanded tax by a specified date for further stay, with the remaining 90% to be kept in abeyance pending appeal. The revisionist was also directed to provide security for the stayed amount within 30 days.The High Court partly allowed the trade tax revision, instructing the first appellate authority to decide on the appeal by a specified date. This judgment addressed the issues of non-acceptance of forms C and F, extension of time for filing forms, tax liability imposition, and the legal provisions allowing for filing forms beyond the prescribed time under the Central Sales Tax Act.