Preservation of records under CST Act

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

We are repeatedly getting the notices from the sales tax authorities in Tamilnadu to submit the Form C for the older financial years to complete the Assessment(prior to fy 2011-12).

I have drafted a letter to the sales tax authority stating that, the authority can seek the form c only for 6 years as amended from 5 years in 2012 by the Tamilnadu sales Tax Authority under TNVAT Act. whether it is also applicable to CST Act?

If we do not submit the forms to the department, they are simply passing the order with a higher rate of tax.

As per my understanding is the preservation of records only for 6 years for sales tax. If i am wrong or any cited case laws. Please revert.

Thanks in advance.

[YAGAY and SUN]

If any litigation is going on then till the finalization of litigation you would have to preserve the all statutory records required under CST Act, 1956 as amended from time to time.

AI Summary

Preservation of records under the CST Act must continue during ongoing litigation, sustaining retention beyond ordinary limits.
Where litigation is pending, the obligation to retain statutory records required under the CST Act continues until the litigation is finally resolved, so taxpayers must preserve all records relevant to the Act for the duration of the dispute.