Declaration forms can justify reassessment and remand when circulars require fresh consideration of Form-C and Form-H claims.

Assessment disallowing exemption and concessional rate claims for non-production of Form-C and Form-H declarations may be reopened where binding departmental circulars require fresh consideration of the declarations. In the reported Madras High Court matter, the court did not examine the merits of the tax claims, but permitted the assessment to be quashed and remanded because available declaration forms had been produced and time was sought for the balance forms before the reply period expired. Fresh orders were directed after receipt and consideration of the forms, subject to payment of part of the tax before the respondent accepted the declarations.

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Issues: Whether the assessment order disallowing exemption and concessional rate claims for want of Form-C and Form-H declarations should be quashed and the matter remanded for fresh consideration in view of the binding circulars of the Commercial Taxes Department.

Analysis: The writ petition challenged the assessment on the ground that the petitioner had produced available declaration forms and sought time to furnish the balance forms, but the order was passed before the reply period expired. Without entering into the merits, the Court relied upon the departmental circulars and held that the assessment could be reopened for consideration of the declaration forms. The Court also imposed a condition requiring partial payment of tax before the respondent would receive the forms and pass fresh orders.

Conclusion: The assessment order was quashed and the matter was remanded to the respondent for fresh orders after receipt and consideration of the Form-C and Form-H declarations, subject to payment of 10% of the tax within four weeks.

Ratio Decidendi: Departmental circulars governing acceptance of declaration forms can justify reopening and fresh consideration of an assessment, even where the original order has already been passed, when the matter is remanded with conditions.

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