Court sets aside Revised Assessment Order under Central Sales Tax Act due to late submission, citing Covid-19 impact.

The High Court allowed the Writ Petition challenging the Revised Assessment Order under the Central Sales Tax Act due to late submission of 'H' Forms and evidence, citing the impact of the Covid-19 pandemic. The Court set aside the order, directing the assessing authority to reconsider the materials, allow both parties to present their case, and issue a fresh order promptly, emphasizing the need for a fair assessment process in exceptional circumstances.

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Issues involved:
The challenge to the Revised Assessment Order under the Central Sales Tax Act, 1956 regarding the levying of tax on Direct Export Sales and Sales in the Course of Export due to late submission of 'H' Forms and related evidence.

Issue 1: Late submission of 'H' Forms and evidence

The petitioner, a Registered Dealer under the APVAT Act and the Central Sales Tax Act, was assessed for tax on Direct Export Sales and Sales in the Course of Export, despite exemptions under Sections 5(1) and 5(3) of the CST Act, due to failure to submit 'H' Forms and other evidence. The petitioner cited the Covid-19 pandemic as the reason for the delayed submission of these forms, which were eventually submitted after the assessment order was passed. The petitioner sought a Revised Assessment Order granting exemption based on the belated submission of forms.

Issue 2: Legal arguments and counterarguments

The petitioner argued that there was no legal impediment to accepting the 'H' Forms after the assessment was made, especially considering the exceptional circumstances of the Covid-19 pandemic. Citing precedents where courts directed authorities to consider late-submitted forms and evidence, the petitioner sought a reconsideration of the assessment order. In contrast, the Government Pleader contended that Rule 12(10) of the CST Rules mandated the submission of 'H' Forms before assessment, and therefore, the refusal to accept the forms was justified.

Judgment:

The High Court acknowledged the impact of the Covid-19 pandemic on the petitioner's ability to timely submit 'H' Forms and related evidence. Referring to previous judgments where courts directed authorities to consider late-submitted forms, the Court allowed the Writ Petition and set aside the Revised Assessment Order. The Court directed the assessing authority to reconsider the materials produced by the petitioner, provide an opportunity for both parties to present their case, and pass a fresh order on merits promptly. The decision was based on the exceptional circumstances and the need for a fair assessment process.

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