CST waiver applications rejected on delay and documentation grounds were set aside, with fresh reconsideration ordered.

Rice millers sought waiver of tax payable above 2% under the CST framework where C-Forms were unavailable, relying on Government memos governing such waiver. Endorsements rejecting the applications on delay, alleged bar on re-assessment, and claimed documentary non-compliance were set aside, as the court followed an earlier Division Bench decision on the same issue. The tax authorities were directed to reconsider the waiver applications afresh and grant waiver to petitioners who satisfy the documentary requirements, while protecting them from coercive steps until that decision is taken.

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Issues: Whether the endorsements rejecting the petitioners' applications for waiver of tax under the CST regime were liable to be set aside and the applications reconsidered afresh.

Analysis: The petitions concerned rice millers seeking waiver of the tax payable over and above 2% under the Central Sales Tax framework in the absence of C-Forms, pursuant to the Government memos governing such waiver. The impugned endorsements rejected the requests on the grounds of delay, alleged bar on re-assessment, and alleged non-compliance with documentary requirements. The petitions were disposed of by following the earlier Division Bench decision on the same issue.

Conclusion: The endorsements were set aside, and the tax authorities were directed to reconsider the waiver applications afresh and grant waiver to those petitioners who satisfy the documentary requirements, with protection from coercive steps until the decision is taken.

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