a csutomer fail to provide c form

[krishan sharma]

 dear sir

i have quiry regading to cst sale . if a (delhi) saler  recieved a purchase order from (up) buyer in the form of cst sale and saler completed the order as per buyer requirement and consideration paid by buyer as per order but buyer fail to issue c form to saler  against said sale in this situation , 
what can do saler so that he safe from penalty and interest charged by department against lower tax paid 

[CA Rachit Agarwal]

There are many such cases are pending before department for assessment. However "C" Form is mandatory requirements.

[YAGAY andSUN]

Dear Sir,

The  Honble Allahabad High Court had held that even thogh declaration form for claiming exemption/concession may be required to be filed during the course of assessment proceedings but, in cases of non furnishing thereof, tax has to be levied at the normal rate which would become the admitted tax and interest and would be liable from the due date of the return in which turnover was disclosed and exemption/concession has been claimed.  There is no scope for consideration of legitimate expectation or hope or bonafide pleas of the Act - CIT vs Control Switch Gears Co. Ltd. (2011) 10 VSTI 18 (All).

Further, you can also go through the case law 'J.K.Synthetics Ltd. vs. CTO (1994) 94 STC (SC) In this matter the Hon'ble Supreme Court had laid down cerntain principles regarding where  the dealer has paid tax bonafidely but the amount of tax is enhanced at the time fo assessment, which may be useful in deciding the above issue in hand.

 

Best Regards,

 

Pradeep Khatri

 

AI Summary

Buyer Fails to Issue C Form; Seller Faces Penalties and Interest for Lower Tax Payments Under CST Sale Terms A seller in Delhi completed a purchase order for a buyer in Uttar Pradesh under CST sale terms. However, the buyer failed to issue the required C Form, potentially exposing the seller to penalties and interest for lower tax payments. A Chartered Accountant noted that many such cases are pending, emphasizing the mandatory nature of the C Form. Another contributor referenced a ruling by the Allahabad High Court, stating that without the C Form, tax must be levied at the normal rate with interest from the due date. The Supreme Court case J.K. Synthetics Ltd. vs. CTO was also mentioned for guidance.