2014 (1) TMI 1827 - HC - VAT and Sales Tax

Court allows concessional rate despite lost declaration forms; petitioner's photocopies deemed sufficient.

The Court quashed the order denying concessional rate for inter-state sales due to loss of declaration forms in a fire. The petitioner provided ... Concessional rate for inter-state sales - declaration form (Form 'C') as precondition for concessional rate - substitution of destroyed original by certified photocopy of counter-part declaration - prescribed mode for submission of lost or destroyed documents - avoidance of hyper-technicality where prescribed ingredients are furnishedDeclaration form (Form 'C') as precondition for concessional rate - substitution of destroyed original by certified photocopy of counter-part declaration - prescribed mode for submission of lost or destroyed documents - avoidance of hyper-technicality where prescribed ingredients are furnished - Photocopies of the counter-part declaration forms certified by a competent sales tax authority may be accepted in place of originals destroyed by fire for claiming concessional rate for inter state sales, subject to the authority treating them as compliant with the relevant provisions. - HELD THAT: - The writ challenges the revisional board's dismissal of the petitioner's claim to the concessional rate for inter state sales on the ground that original declaration forms (Form 'C') were not produced because they were destroyed in a fire. The petitioner produced photocopies of the counter part declaration forms obtained from the seller together with a certificate from the sales tax authority in New Delhi certifying those photocopies as correct and genuine. The respondent relied on the existence of a prescribed mode for submission of declaration forms where originals are lost or destroyed. The Court recognised that where the law prescribes a particular manner of compliance that mode must ordinarily be followed, but held that authorities should not adopt an overly technical approach where the assessee has furnished all necessary ingredients required by the prescribed form. Noting that the respondents did not dispute the competency or legality of the certification issued by the sales tax authority in New Delhi, the Court found no impediment to the revisional board accepting the certified photocopies as fulfilling the requirement of the declaration forms which were destroyed by fire. The Court therefore quashed the impugned order and directed that the revisional board consider the certified photocopies as having been made in compliance with the relevant provisions and decide the petitioner's claim to the concessional rate accordingly.Impugned order quashed; petitioner permitted to submit the certified photocopies of the counter part declaration forms before the Revisional Board, which shall treat them as compliant with the relevant provisions and reconsider the claim for concessional rate.Final Conclusion: Writ allowed in part; the revisional board's order is set aside and the petitioner permitted to place certified photocopies of the destroyed declaration forms before the board, which must treat them as complying with the statutory requirement and reconsider the claim for concessional rate for inter state sales. Issues:1. Challenge to order denying concessional rate for inter-state sales due to loss of declaration forms in a fire.2. Submission of photocopies of declaration forms with a certificate for consideration by authorities.3. Compliance with prescribed formalities for submission of lost or destroyed declaration forms.Analysis:The petitioner challenged the order of the West Bengal Commercial Appellate and Revisional Board, which dismissed the original application for claiming a concessional rate for inter-state sales due to the loss of declaration forms in a fire incident. The authorities denied the claim citing the absence of declaration forms. The petitioner obtained photocopies of the declaration forms from the seller along with a certificate declaring them as true copies of the originals. The petitioner sought an opportunity to submit these documents for consideration by the authorities.During the proceedings, the respondent authorities argued that there are prescribed formalities for submission of declaration forms in case of loss or destruction. They contended that unless these formalities are complied with, the declaration forms cannot be considered. However, the Court emphasized that if all necessary information required in the prescribed form is provided by the assessee, authorities should not be overly technical in denying the claim based on procedural grounds.The petitioner presented a certificate from the Department of Trade and Taxes certifying the photocopies of the declaration forms as correct and genuine. The Court noted that the respondents did not dispute the legality of this certificate issued by a competent authority. Consequently, the Court found no impediment for the authorities to consider the photocopies of the declaration forms since the originals were destroyed in the fire.In light of the above, the Court quashed and set aside the impugned order. The petitioner was granted permission to submit the photocopies of the declaration forms along with the certificate issued by the sales tax authority at New Delhi before the Revisional Board. The Board was directed to treat these submissions as compliant with the relevant provisions and to consider the petitioner's claim for the benefit of the concessional rate. The writ petition was disposed of with these observations, and the order was to be provided to the parties after being countersigned by the Registrar.