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

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

The court set aside the assessment order and notices challenged by the petitioner, directing submission of original declaration Forms and granting a ... Acceptance of delayed Form C and Form F under Rule 12(7) of the Central Sales Tax (Registration and turnover) Rules, 1957 - acceptance of genuine statutory declarations unless delayed without sufficient cause - remand for verification and fresh adjudication after personal hearing - setting aside assessment order for failure to consider statutory declarationsAcceptance of delayed Form C and Form F under Rule 12(7) of the Central Sales Tax (Registration and turnover) Rules, 1957 - acceptance of genuine statutory declarations unless delayed without sufficient cause - Delayed submission of original Form C and Form F declarations can be condoned and the declarations accepted if sufficient cause is shown under Rule 12(7), and genuine declarations should be the norm for granting relief. - HELD THAT: - The Court examined Rule 12(7) which permits the prescribed authority to allow furnishing of Form C/Form F after the three-month period if satisfied that the person was prevented by sufficient cause. The petitioner explained delay arose from collecting declarations from dealers in various States and from year-end audit commitments. The Court held that the assessing authority should focus on the genuineness and originality of the declarations rather than adopt a strict pedantic approach to filing timelines. Acceptance of genuine declarations is to be the norm and refusal solely on account of delay without consideration of sufficient cause is inappropriate. [Paras 12, 13, 14]The petitioner's explanation for delay is accepted; the authority is directed to consider and accept genuine original declarations under Rule 12(7) unless delay is without sufficient cause.Remand for verification and fresh adjudication after personal hearing - setting aside assessment order for failure to consider statutory declarations - The impugned assessment order and the notices are set aside and the matter is remanded for fresh consideration after personal hearing and production of original Forms C and F. - HELD THAT: - Having accepted the applicability of Rule 12(7) and the petitioner's explanation for delay, the Court quashed the assessment order and notices impugned in the petition and directed that the authorised representative of the petitioner shall tender original declaration Forms (C and F) and be accorded personal hearing. Thereafter the respondent shall pass a fresh order after verifying genuineness and originality of the declarations. The Court provided a specific date for appearance and permitted the respondent to fix a proximate alternate date if necessary. [Paras 15]Impugned assessment order and notices set aside; matter remanded for fresh adjudication after production of original Forms and personal hearing.Final Conclusion: The writ petition is allowed; the assessment order and notices relating to AY 2013-14 are set aside and the respondent is directed to accept and verify original Form C/Form F declarations under Rule 12(7), afford personal hearing to the authorised representative and thereafter pass a fresh order. No costs. 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.