Supply of dolomite without Form C prompts reassessment; court orders fresh decision after buyer produces Form C

Challenge concerns levy of 5% tax where seller could not produce Form C; purchaser had obligation to obtain and furnish Form C under law, but failed to do so leading to adverse assessment. The appellate process included dismissal for want of prosecution but remittal was precluded because the relevant tribunal no longer exists, which prevented referral back. The purchaser later furnished Form C and it was placed on record; consequently the lower assessment and first appellate orders were quashed and the matter was directed to be decided afresh by the designated authority after affording the seller a hearing.

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Issues: Whether, in view of production of the required Form-C by the purchaser during pendency of the writ petition, the assessment and first appellate orders can be quashed and the matter remitted for fresh decision after affording opportunity to the assessee to place the Form-C on record.

Analysis: The Court noted that Rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957 and Section 8(4) of the Central Sales Tax Act, 1956 place the obligation on the purchaser to obtain and furnish the prescribed declaration (Form-C) to the seller. The petitioner was unable to produce Form-C before the Assessing Officer because the purchaser had not provided it; however, the purchaser subsequently issued Form-C and it was placed on record during the writ proceeding. The Court observed that the Tribunal previously deciding the second appeal is not available and that, without adjudicating merits, the newly produced Form-C may materially affect the tax treatment applied by the assessing authorities.

Conclusion: The assessment order and the first appellate order are quashed and the matter is remitted to the assessing authority for fresh decision after affording the petitioner an opportunity of hearing to place the Form-C and other relevant documents on record.

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