Reasonable cause for delayed C forms may justify lenient treatment and prevent higher tax on inter-State sales.

Belated production of C forms may be accepted where the delay is supported by a reasonable explanation and does not reflect wilful or deliberate default. The text notes that illness and personal inconvenience of the proprietor and family, backed by documents, were treated as sufficient cause for a lenient approach under Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957. Rejection of the forms on a technical ground was therefore considered improper, the higher tax levy on the inter-State sales was set aside, and the matter was remitted for fresh consideration with liberty to produce further documents.

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Issues: Whether the delay in filing C forms could be accepted on the ground of reasonable cause and the consequent levy of higher tax on inter-State sales covered by those forms was sustainable.

Analysis: The delay in producing the declaration forms was explained by the personal inconvenience and illness of the proprietor and his family, supported by documents. Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 requires filing within the prescribed time, but the issue was whether sufficient cause existed for belated filing. The explanation showed no wilful or deliberate default, and the circumstances warranted a lenient approach rather than rejection of the forms on a technical ground.

Conclusion: The delay should have been accepted as reasonably explained. The order levying higher tax was set aside and the matter was remitted for fresh consideration, with liberty to produce further documents.

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