Validity of ST-1 declaration forms cannot be curtailed by circulars when statutory requirements are otherwise satisfied.

A duly issued ST-1 declaration form under the Delhi Sales Tax Act remained valid despite overwritings and corrections, because the Rules did not impose any inherent expiry on an already issued form and Rule 8(9) treated such forms as continuing until surrendered on cancellation of registration. The Revenue's circular could not override the statutory scheme or retrospectively curtail the benefit available under the Act and Rules. Where the goods sold were within the purchasing dealer's registration coverage and the corrections did not show a false transaction, the deduction could not be denied. The rejection of the ST-1 forms was therefore unsustainable.

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Issues: Whether the assessee was entitled to deduction under the Delhi Sales Tax Act on the basis of Form ST-1 despite overwritings and corrections in the form; and whether the departmental circular could curtail the validity of forms already issued.

Analysis: The form was issued before the circular relied upon by the Revenue, and the Rules did not prescribe any inherent life span for a declaration form already issued. Rule 7(1) required a declaration in Form ST-1 for claiming deduction, while the proviso dealt only with the situation where deliveries were spread over different years. The record showed that the goods sold were within the purchasing dealer's registration coverage, and the overwritings on the form did not establish that the assessee had induced a false transaction. Rule 8(9) also indicated that forms, once issued, retained validity until surrender upon cancellation of registration. A circular could not override the statutory scheme or retrospectively impair the benefit otherwise available under the Act and the Rules.

Conclusion: The assessee was entitled to the deduction, and rejection of the ST-1 forms was unsustainable.

Final Conclusion: The assessment and tribunal findings were set aside and relief was granted to the dealer on the tax deduction claim.

Ratio Decidendi: A duly issued statutory declaration form cannot be invalidated by an administrative circular in the absence of a statutory restriction, and clerical overwritings do not defeat deduction where the goods are otherwise covered by the dealer's registration and the statutory requirements are satisfied.

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