Transit sales exemption and appellate acceptance of declaration forms upheld despite procedural objections and circular-based restrictions.

Transit sales exemption under Section 6(2) of the Central Sales Tax Act, 1956 could not be denied where the prescribed E1 and C forms had been produced, because the statute required only those declaration forms and did not permit an added disqualification based on a lower figure in the E1 statement. C declaration forms could also be accepted at the appellate stage, since an appeal continues the assessment proceedings and a departmental circular cannot override the Act or restrict the appellate authority's power to verify genuine forms. The revision was allowed and the adverse Tribunal order was set aside.

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Issues: (i) Whether transit sales exemption under Section 6(2) of the Central Sales Tax Act, 1956 could be denied on the ground that the E1 statement showed a lower turnover despite the statutory E1 and C forms being produced. (ii) Whether C declaration forms could be rejected for not having been filed before the Assessing Officer within five years when they were produced before the appellate forum and were otherwise genuine.

Issue (i): The statutory requirement under Section 6(2) of the Central Sales Tax Act, 1956 is the production of the prescribed declaration forms. Once the assessee had furnished the required E1 and C forms, no further condition could be imposed by the Tribunal merely because the earlier E1 statement reflected a lower figure.

Analysis: The disallowance was founded on a procedural mismatch between the turnover shown in the E1 statement and the turnover supported by the statutory forms. The statutory prescription did not authorize denial of exemption on such a ground where the required forms had been furnished.

Conclusion: The issue was answered in favour of the assessee.

Issue (ii): Whether the appellate authorities could accept C declaration forms produced at the appellate stage notwithstanding a departmental circular insisting upon filing before the Assessing Officer within five years.

Analysis: An appeal is a continuation of the assessment proceedings, and genuine declaration forms may be accepted at the appellate stage. A circular of the Commissioner could not curtail the statutory power of the appellate authority or create a disqualification not found in the Act.

Conclusion: The issue was answered in favour of the assessee.

Final Conclusion: The revision was allowed, the adverse order of the Tribunal was set aside, and the assessee was permitted to produce the declaration forms for verification and consequential revision of assessment.

Ratio Decidendi: Where the statute prescribes only specified declaration forms for concessional treatment, exemption cannot be denied by importing additional procedural conditions from an administrative circular, and genuine forms may be entertained at the appellate stage because an appeal continues the assessment proceedings.

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