Sufficient cause for delayed C forms requires fair discretion; provisional assessment cannot rest on abrupt refusal of extra time.

The statutory scheme under rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 and rule 7A and rule 12(1)(b) of the Central Sales Tax (Orissa) Rules, 1957 allows further time for filing C declaration forms on proof of sufficient cause. The assessing authority must exercise that discretion fairly, bona fide and reasonably, and a provisional assessment must also be completed within a reasonable time. On the stated facts, the dealer later produced the forms and had shown sufficient cause for the delay because the forms had not yet been issued to the purchasing dealer, so an abrupt refusal of further time was not a fair exercise of discretion.

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Issues: Whether the dealer was prevented by sufficient cause from furnishing the C declaration forms within the prescribed time, and whether the provisional assessment orders and recovery notice could be sustained.

Analysis: The statutory scheme under rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 and rule 7A and rule 12(1)(b) of the Central Sales Tax (Orissa) Rules, 1957 permits the prescribed or assessing authority to grant further time for filing declaration forms where sufficient cause is shown. The absence of a fixed time-limit for completing provisional assessment does not authorise indefinite delay by the dealer, and the assessment must be made within a reasonable time. At the same time, the discretion to refuse additional time must be exercised fairly, bona fide, and reasonably. On the facts, the dealer could not produce the forms earlier because they had not yet been issued to the purchasing dealer, and the forms were later produced before the authority. In these circumstances, there was sufficient cause for the delay and the abrupt rejection of the request for further time was not a fair or reasonable exercise of discretion.

Conclusion: The provisional assessment orders and the recovery notice could not be sustained and were liable to be quashed.

Final Conclusion: Relief was granted to the dealer, with the assessing authority directed to reconsider the claim under section 6(2) of the Central Sales Tax Act, 1956 on the basis of the declaration forms produced and pass orders in accordance with law.

Ratio Decidendi: Where the statute empowers extension of time for filing declaration forms on proof of sufficient cause, that discretion must be exercised fairly and reasonably, and a provisional assessment made without such fair consideration cannot be sustained.

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