TaxTMI 
TaxTMI 
2010 (4) TMI 984
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.... II. Whether, on the facts and circumstances of the case, section 8(4) of the Central Act would pre-suppose verification of authenticity of the C form received from the purchaser by the dealer? " The appellant had effected inter-State sales to various persons during 1998-99 and 1999-2000 including sales to one Raj Chemicals, Agra. The assessing officer framed assessment for the years in question whereby he had rejected OGS sales to various dealers against C form and charged higher rate of tax at 10 per cent, and also charged interest and penalty. The appellant carried the matter in appeal before the Assistant Commissioner who summarily dismissed the appeal vide order dated December 29, 2006. The appellant carried the matter in further appeal before the Tribunal. The Tribunal remanded the matter to the first appellate authority for fresh consideration. In remand proceedings, the first appellate authority vide order dated April 12, 2006 partly allowed and partly disallowed the appeal. The first appellate authority after verification of all the records seized by the Government as well as the ones which were produced by the appellant concluded that the OGS sales except those made to....
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....e appellant should not be denied the benefit of the C forms on the ground that the same are forged. The Tribunal in the impugned order has noted that the appellant had effected transactions with Raj Chemicals at Agra for the years 1998-1999 and 1999-2000 which involved sale of goods worth Rs. 1,08,04,838 and Rs. 2,38,96,968, respectively and had produced 2 C forms for the said transactions for each year. At the time of assessment inquiry was made whereby the concerned authority cross-checked with the Deputy Commissioner, Agra, who vide order dated August 18, 2000 reported that according to the record produced by Raj Chemicals, the dealer had not effected any transaction of sale or purchase with the dealers of Gujarat State. The Tribunal compared the C forms issued by the concerned authority to Raj Chemicals with C forms produced by the appellant and found that two C forms produced by the appellant had not been issued by the concerned Sales Tax Officer from Agra. It was further found that two C forms produced by the appellant in support of the transactions from Raj Chemicals had not been obtained from the prescribed authority and that as per the report of the concerned authority no....
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....hus: "(4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority: Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit." Thus, under sub-section (4) of section 8 a dealer would be entitled to pay tax at the rate fixed under the Central Act in respect of an inter-State sale, only upon furnishing to the prescribed authority in the prescribed manner a declaration duly filled and signed by the dealer to whom the goods are sold after obtaining the prescribed form from the prescribed authority. Rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 provides for furnishing of declarations and certificates. Sub-rule (1) of rule 12 lays down that the declaration and certificate referred to in sub-section (4) of section 8 shall be in forms C....
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....he State from where the actual sales are effected. Secondly, the purchasing dealer also cannot suppress such purchases once he issues C form to the selling dealer. Since the dealer should issue C form, has to maintain a detailed account of such C forms obtained from the Department prescribed under the States taxation law. The C form is a declaration to be issued only by the sales tax authorities of the concerned States. By issuing declaration in C form the purchasing dealer would be benefited as he is entitled to purchase goods by paying only concessional rate of tax of four per cent as prescribed by the concerned State of the purchasing dealer otherwise the purchasing dealer has to pay tax at a higher rate besides additional taxes on such sales effected within the State where selling dealer is situated." Having regard to the Scheme of the Act, in the light of the principles enunciated in the decisions referred to hereinabove, a dealer would not be entitled to the benefit of concessional rate of tax even if the C form submitted by him is defective. The appellant's case stands on a weaker footing inasmuch as in the facts of the present case the Tribunal has found that the C for....