2017 (2) TMI 929 - HC - VAT and Sales Tax

Court sets aside assessment order and emphasizes authenticity over strict deadlines for declaration Forms

M/s. Transasia Bio-Medicals Ltd. Versus The Deputy Commercial Tax Officer

M/s. Transasia Bio-Medicals Ltd. Versus The Deputy Commercial Tax Officer - [2017] 102 VST 396 (Mad) Issues:1. Assessment order and notice challenged by the petitioner.2. Direction sought for consideration of representations and declarations made in Form C and F.3. Dispute over acceptance of declarations made in Form F.4. Application of Rule 12(7) of the Central Sales Tax Rules, 1957.5. Delay in filing declarations and genuine nature of declarations.6. Judicial approach towards acceptance of genuine declarations.Analysis:1. The petitioner challenged the assessment order and notices issued by the respondent. The petitioner, a registered dealer under the Puducherry Value Added Tax Act, 2007, trades in medical equipment and conducts inter-State sales from its warehouse. The respondent proposed to tax transactions against declarations made in Form C and Form F, leading to the dispute.2. The petitioner sought a direction to consider its representations and declarations in Form C and F. While declarations in Form C were accepted, those in Form F were rejected. Subsequently, the respondent issued notices for submission of statutory Forms for certain financial years, leading to further contention.3. The core issue revolved around the acceptance of declarations made in Form F. The petitioner contended that genuine declarations should be accepted, emphasizing the importance of original and genuine declarations over the time frame within which they are filed. The petitioner's explanation for the delay in filing declarations was collecting them from dealers in various States.4. The application of Rule 12(7) of the Central Sales Tax Rules, 1957 played a crucial role in the judgment. The rule allows for furnishing declarations within a specified time frame, with provisions for extension if sufficient cause is demonstrated. The petitioner relied on this rule to support its case for acceptance of declarations.5. The judgment highlighted the significance of accepting genuine declarations unless delayed unreasonably and without sufficient cause. The court emphasized that the focus should be on the authenticity of declarations rather than a strict adherence to filing deadlines. This approach aimed to reduce unnecessary disputes and ensure dealers receive their rightful benefits.6. In conclusion, the court set aside the assessment order and notices, directing the petitioner to submit original declaration Forms and granting a personal hearing. The judgment emphasized the importance of accepting genuine declarations promptly to streamline processes and minimize legal disputes, providing clarity on the judicial approach towards such matters.