TaxTMI 
TaxTMI 
1990 (1) TMI 287
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....th these years, the appellant/assessee produced sale pattials and F forms in support of the claim. The assessing authority took the view that the documents prescribed under rule 5A of the Central Sales Tax (Kerala) Rules, 1957, were not produced by the appellant and so there was a failure to prove the principal-agent relationship between the appellant and the dealers in other States. The case made out was that copies of bills issued by the agents to the purchasers were not produced, as required by rule 5A(d) of the Central Sales Tax (Kerala) Rules. It was held that in view of the failure to produce the documents prescribed under rule 5A of the Central Sales Tax (Kerala) Rules, the appellant failed to prove the relationship of principal-agent and so the sales by the appellant to the dealers at the other end should be treated as inter-State sales and assessments were completed accordingly. On this basis, exhibits P3 and P4 assessment orders were passed, for the years 1976-77 and 1977-78, on 15th February, 1980. 2.. The appellant filed O.P. No. 2659 of 1980 and assailed exhibits P3 and P4 on various grounds. Rule 5A of the Central Sales Tax (Kerala) Rules was attacked as ultra vire....
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....nquiry as he may deem necessary that the particulars contained in the declaration furnished by a dealer under sub-section (1) are true, he may, at the time of, or at any time before, the assessment of the tax payable by the dealer under this Act, make an order to that effect and thereupon the movement of goods to which the declaration relates shall be deemed for the purposes of this Act to have been occasioned otherwise than as a result of sale. Explanation.-In this section, "assessing authority" in relation to a dealer, means the authority for the time being competent to assess the tax payable by the dealer under this Act." Sections 13(1), 13(3) and 13(4)(e) of the Central Sales Tax Act: "13. Powers to make rules.-(1) The Central Government may, by notification in the Official Gazette, make rules providing for- ........................ (3) The State Government may make rules, not inconsistent with the provisions of this Act and the rules made under sub-section (1), to carry out the purposes of this Act. (4) In particular and without prejudice to the powers conferred by sub-section (3), the State Government may make rules for all or any of the following purpose....
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....ty is satisfied that the person concerned was prevented by sufficient cause from furnishing such declaration or certificate within the aforesaid time, that authority may allow such declaration or certificate to be furnished within such further time as that authority may permit. (8) (a) The person referred to in clause (a) of sub-rule (1) of rule 3 shall alone be competent to sign the declaration in form C or form F or the certificate in form E-I or form E-II: Provided that where such person is a proprietor of any business or a partner of a firm or a karta or manager of a Hindu undivided family, any other person authorised by him in writing may also sign such declaration or certificate: Provided further that in the case of a company, such declaration or certificate can also be signed by any other officer of the company authorised under the Memorandum or Articles of Association of the company or under any other special or general resolution of the company or under a resolution passed by the Board of Directors of the company, to authenticate any document on behalf of such company. (b) Such person shall signify on such declaration or certificate his status and shall ....
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.... also direct the dealer to produce for inspection the portion of the declaration marked 'duplicate'. (2) When goods are received on transfer, and not by reason of sale or purchase in the course of inter-State trade or commerce, from a head office, branch, agent or principal in another State by the branch, head office, principal or agent within the State, the person empowered under sub-section (1) of section 6A or clause (a) of sub-rule (7) of rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957, as the case may be, shall issue a declaration in form F obtained from the registering authority and duly filled and signed by him to the head office, branch, agent or principal, as the case may be, in the other State. (3) The blank declaration in form F shall be issued by the registering authority, only to dealers registered under the Act on payment of a fee at the rate of rupees twelve per book of twenty-five forms and rupees forty per book of one hundred forms. (4) No registered dealer shall give nor shall a dealer accept any declaration in form F except in a form obtained from the registering authority and not declared obsolete and invalid by the Government o....
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....y is enjoined to pass an order in the matter. A plain reading of section 6A(2) of the Central Sales Tax Act points out that in cases where the dealer exercises the option of furnishing the declaration (F forms), the only further requirement is that the assessing authority should be satisfied, after making such enquiry, as he may deem necessary, that the particulars contained in the declaration furnished by the dealer are "true". The scope or frontiers of enquiry, by the assessing authority under section 6A(2) of the central Sales Tax Act is limited to this extent, namely, to verify whether the particulars contained in the declaration (F forms) furnished by the dealer are "true". It means, the assessing authority can conduct an enquiry to find out whether the particulars in the declaration furnished are correct, or dependable, or in accord with facts or accurate or genuine. That alone is the scope of the enquiry contemplated by section 6A(2) of the Act. On the conclusion of such an enquiry, he should record a definite finding, one way or the other. As to what should be the nature of the enquiry, that can be conducted by the assessing authority under section 6A(2) of the Act, is cert....
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....found to be relevant or germane to the enquiry, he should have substantiated the necessity for the production of such documents or papers, in the particular case, in exercising his powers under section 6A(2) of the Central Sales Tax Act and then for non-production of such documents or papers in the enquiry, entered appropriate findings as specified in section 6A(2) of the Act. This has not been done at all in this case. We find from exhibits P3 and P4 that the assessing authority has totally failed to apply his mind to the only requirement of section 6A(2) of the Act, namely, to find whether the particulars contained in the declarations (F forms), furnished by the dealer, are "true". That question alone arose for consideration before the assessing authority. On that aspect, there is no discussion or finding in exhibits P3 and P4. On this short ground, exhibits P3 and P4 orders are infirm. There is a total non-application of the mind to the crucial question or aspect that arose for consideration before the assessing authority; also the scope of his jurisdiction under section 6A(2) of the Central Sales Tax Act was misunderstood. 8.. On this short ground, we hold that exhibits P3 a....