Form C declarations for genuine inter-State sales cannot be rejected on a technical delivery-date defect when concessional tax is otherwise available.

Form C declarations supporting concessional tax under Section 8 of the Central Sales Tax Act could not be rejected where the inter-State sales were genuine and the only objection was that the declarations referred to the date of delivery rather than the date of despatch. The provisos to Rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules were held not to require such a strict reading as to defeat the statutory benefit, and departmental guidance against rejection on insignificant technical grounds was noted. The assessee was therefore entitled to concessional tax, and the matter was remanded for fresh consideration, including the alternative contention on turnover.

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Issues: Whether Form C declarations could be rejected merely because they reflected inter-State sales by reference to the date of delivery of goods rather than the date of despatch, and whether the assessee was entitled to concessional tax on the basis of substantial compliance with the statutory requirements.

Analysis: The claim to concessional tax under Section 8 of the Central Sales Tax Act, 1956 depended on sales to registered dealers in another State supported by Form C declarations. The dispute was not about the genuineness of the sales, but only about the manner in which the declarations recorded the transactions. The Court held that where the transactions are genuine, a declaration cannot be rejected on the narrow ground that it is linked to the date of delivery rather than the date of despatch. The provisos to Rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957 could not be read so strictly as to defeat the substantive benefit granted by the Act. The Court also relied on the departmental circular clarifying that such declarations should not be rejected outright on insignificant technical grounds, and noted that Rule 10(2) of the Central Sales Tax (Tamil Nadu) Rules, 1957 permitted submission of declarations before final assessment. The Tribunal further failed to consider the assessee's alternate contention that the disputed turnover was lower than that assumed by the authorities.

Conclusion: The Form C declarations could not be rejected merely because they reflected delivery dates instead of despatch dates, and the assessee was entitled to the concessional rate of tax. The Tribunal's order was set aside and the matter was remanded for fresh consideration.

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