2016 (4) TMI 612 - HC - VAT and Sales Tax

Calcutta High Court Upholds Petitioner's Plea on Disallowed 'D' Form Certificates

The High Court of Calcutta allowed the petitioner's plea in a case concerning the disallowance of 'D' form certificates by the West Bengal Commercial ... Acceptance of D form certificates - hyper-technical rejection - rational approach to documentary shortcomings - non-fatality of omission of date or purchase order where particulars are evident - remand for verification and credit by assessing authorityAcceptance of D form certificates - non-fatality of omission of date or purchase order where particulars are evident - hyper-technical rejection - Validity of the Board's rejection of undated 'D' form certificates and certificates lacking reference to purchase orders. - HELD THAT: - The Court held that mere omission of the date of issue on a 'D' form or absence of an express reference to a purchase order is not necessarily fatal where the particulars of the transaction (invoices, bills or cash memoranda with dates) are evident from the forms and there is no material to detract from those particulars. The Board's insistence on strict compliance in the present case was characterised as unduly hyper-technical. While a Board may properly reject a certificate if there are grounds to suspect the transaction or the certificate, a rational approach is required before discarding certificates for such omissions. In the facts of this case the Court found that the Board should not have summarily disallowed the claimed credit on that basis alone.Order of the Board insofar as it rejected the 'D' form certificates is set aside; the petitioner may re-submit the same 'D' forms and they must be taken cognisance of and given due credit by the Assessing Authority.Final Conclusion: Writ petition allowed to the extent of setting aside the Board's rejection of the 'D' form certificates; matter remitted to the Assessing Authority to consider the submitted 'D' forms and grant appropriate credit. No order as to costs. Issues: Disallowance of 'D' form certificates by the West Bengal Commercial Taxes Appellate and Revisional Board due to lack of dates and purchase order references.The judgment delivered by the High Court of Calcutta addresses the complaint raised by the petitioner regarding the hyper-technical disallowance of 'D' form certificates obtained from the Government of Mizoram by the West Bengal Commercial Taxes Appellate and Revisional Board. The impugned order dated April 17, 2015 highlighted that the 'D' certificates lacked dates of issue and any reference to purchase orders, leading to the disallowance of a significant claim amount. The Court observed that if the 'D' forms had included issue dates and purchase order details, or if the petitioner had produced corresponding purchase orders, the Board might have accepted the certificates. The petitioner's reliance on a previous judgment emphasized that omission of the date of issue would not be fatal if transaction particulars were evident from the form. Additionally, the judgment recognized that not every transaction, even with a government entity like the Government of Mizoram, necessitates a written purchase order. The Court stressed the need for a rational approach by the Board, suggesting that unless there are additional grounds for suspicion, mere omissions in the form should not lead to rejection. Consequently, the Court allowed the petitioner's plea, setting aside the impugned order and granting the petitioner an opportunity to resubmit the 'D' forms to the Assessing Authority for due credit without any cost implications. The Court also directed the provision of urgent certified website copies of the order to the concerned parties upon request, subject to formalities.