2026 (1) TMI 17 - HC - VAT / Sales Tax

Export sales turnover claimed exempt u/s5(1) on H-forms, with revisional refusal to consider them set aside.

Whether the escaped turnover was exempt as export sales under s.5(1) CST Act upon production of H-forms was the dominant issue. The HC held that the ... Turnover escaped of assessment - said turnover relates to export of rice under Section 5(1) of the CST Act - petitioner contends that it had produced the necessary H-forms on 11.02.2016, before the Commercial Tax Officer, after which the Commercial Tax Officer did not take any further steps - HELD THAT:- It is not understandable as to how the question of filing H-forms after the order of assessment would arise in the present case. The order of assessment, dated 31.03.2015, did not touch the aforesaid turnover. It is only subsequently that the Commercial Tax Officer raised this issue but did not take it to its logical conclusion. Consequently, the Deputy Commissioner raised the very same issue and refused to take into account the H-forms produced by the petitioner even after recording that such xerox H-forms had been placed before him. The subsequent endorsement of the Deputy Commissioner in the year 2023 would again show that the H-forms had in fact had been produced before the Commercial Tax Officer who returned them under a specific endorsement, mentioned above, in the year 2023. The facts on record clearly make out a case in favour of the petitioner. As necessary H-forms had been filed by the petitioner and photostat copies of the same had also been placed before the Deputy Commissioner, the same should have been taken into account and the benefit of such H-forms should have been given to the petitioner. The order of revision, dated 19.04.2018, is set-aside and accordingly, this Writ Petition is allowed. Issues: Whether the revisional order raising demand by treating turnover as escaped assessment and rejecting photocopies of H-forms and other documentary proof should stand, and whether the petitioner is entitled to exemption for the disputed turnover on production of H-forms.Analysis: The assessment proceedings originally did not deal with the disputed turnover; subsequently a notice alleged turnover had escaped assessment and called for production of documents under Section 5(1) of the CST Act. Photocopies of H-forms and other documents evidencing export sales, aggregating to the disputed turnover, were produced and recorded before the revisional authority. The revisional authority declined to consider those documents on the ground that they were not placed before the original assessing officer and that they were produced after assessment. The available record also contains an endorsement showing earlier submission/return of H-forms by the assessing officer. The factual matrix and documentary production were examined with reference to the requirements for claiming export exemption and the scope of revisionary exercise to revisit turnover that was not touched in the original assessment.Conclusion: The revisional order is set aside and the claim of exemption in respect of the disputed turnover is accepted on the basis of the H-forms and supporting documents placed on record. The writ petition is allowed.