Forged Form C declarations cannot defeat VAT liability where the assessee bears the burden of proving authenticity.

Form C declarations found to be forged or non-genuine do not entitle an assessee to tax relief under the M.P. VAT Act, because the burden remains on the assessee to prove the authenticity of the declarations. The Court held that a fake Form C is equivalent to non-production of a valid declaration, and the Department need not prove collusion with the purchasing dealer where verification shows the forms to be false or unverifiable. On those findings, tax and penalty were sustained and no substantial question of law arose.

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Issues: Whether the assessee could avoid tax and penalty on the basis of Form C declarations found to be non-genuine, and whether any substantial question of law arose for consideration.

Analysis: The appeal arose from reassessment under the M.P. VAT Act on the footing that the Form C declarations produced by the assessee were not verifiable and were found to be not genuine. The Court noted that the assessee had obtained the benefit of the declarations and that the burden lay on the assessee to establish that the forms were genuine. It was also held that the absence of a specific finding on collusion did not assist the assessee, because the reassessment was not founded on collusion but on verification showing the declarations to be forged or false. Relying on prior decisions, the Court accepted that a fake Form C is equivalent to non-production of a valid declaration and that the assessee cannot shift the burden to the Department.

Conclusion: The assessee was not entitled to relief, and no substantial question of law arose. The appeal was dismissed.

Ratio Decidendi: Where Form C declarations are found to be forged or non-genuine, the assessee bears the burden to prove their authenticity, and tax and penalty can be sustained without proof of collusion with the purchasing dealer.

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