2020 (7) TMI 181 - HC - VAT and Sales Tax

Court orders Commissioner to unblock portal for accessing CST Forms

Infiniti Retail Limited Versus Government Of NCT Of Delhi & Anr.

The court allowed the writ petition, directing the Commissioner to unblock the portal for the petitioner to access and procure the necessary Forms under ... Unblocking of portal to enable the petitioner to access and procure Forms C and Forms F - Sections 6 and 6A of the Central Sales Tax Act, 1956 - petitioner submits that neither CST Act nor the rules framed therein provide for blocking of a portal due to pendency of assessment orders - HELD THAT:- This Court is of the opinion that by virtue of power conferred under Rule 5(4)(ii) of the Central Sales Tax (Delhi) Rules, the Commissioner can withhold issuance of declaration Form C to an assessee/applicant provided he passes a reasoned order after affording an opportunity of hearing to the assessee/applicant - However, in the present case, despite the petitioner highlighting its grievances vide letters dated 25th March, 2019 and 17th May, 2019, the notice under Section 59(2) has been issued on 03rd July, 2020 and that too after receipt of an advanced copy of the present writ petition. In any event, as admittedly no order has been passed under Rule 5(4)(ii) of the Central Sales Tax (Delhi) Rules till date, this Court is of the opinion that the Commissioner cannot withhold issuance of declaration Form C to the petitioner in the present case - the present writ petition is allowed and the Commissioner, Delhi Valued Added Tax, is directed to unblock the portal forthwith so as to enable the petitioner to access and procure the requisite statutory Forms (Form C and Form F) provided under Sections 6 and 6A of the CST Act. Petition disposed off. Issues:Petition seeking unblocking of portal to access Forms C and F under CST Act - Interpretation of Rule 5(4)(ii) of Central Sales Tax (Delhi) Rules - Commissioner's power to withhold issuance of Form C - Opportunity of hearing to be provided - Validity of notice under Section 59(2) of DVAT Act - Compliance with procedural requirements.Analysis:The petitioner filed a writ petition requesting the court to direct the respondent to unblock the portal for accessing Forms C and F under Sections 6 and 6A of the CST Act. The petitioner argued that neither the CST Act nor its rules authorize blocking a portal due to pending assessment orders. The petitioner's counsel contended that such a condition would be arbitrary and not recognized under the CST Act, citing Section 43 of the DVAT Act. The court issued notice to the respondents, who accepted it. The respondents, through their counsel, highlighted Rule 5(4)(ii) of the Central Sales Tax (Delhi) Rules, which empowers the Commissioner to withhold issuance of Form C after providing an opportunity of hearing to the assessee. A notice was issued under Section 59(2) of the DVAT Act, fixing a hearing date. The court reproduced Rule 5(4)(ii) and acknowledged the Commissioner's authority to withhold Form C issuance, subject to a reasoned order after hearing the applicant.The court opined that the Commissioner can withhold Form C issuance under Rule 5(4)(ii) by passing a reasoned order after hearing the applicant. However, in this case, despite the petitioner's prior complaints, the notice was issued after the writ petition was filed. As no order had been passed under Rule 5(4)(ii) till then, the court held that the Commissioner could not withhold Form C issuance. Consequently, the court allowed the writ petition, directing the Commissioner to unblock the portal for the petitioner to access and procure the necessary Forms under the CST Act. The court ordered the judgment to be uploaded on the website and forwarded a copy to the counsel via email.