TaxTMI 
TaxTMI 
2016 (6) TMI 646
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....holding that the buyer had not filed declaration in Form 27C at the time of purchase is only a technical default in nature? "Whether the Tribunal was correct in holding that the revenue had ample time to verify whether the buyers were indeed using wood pulp for manufacturing, processing or producing article or thing and not for trading?" 3. Whether the Tribunal was correct in treating only the delay in filing the declaration before CIT, which is not at all the issue in the order passed by ITO (TDS), thus giving decision which is beyond jurisdiction and the issue what Tribunal has not considered whether the lapse which the seller has committed by not obliging to collect tax in the absence of declaration by the buyer is condonable or no....
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....ercentage i) Alcoholic Liquor for human Consumption One per cent ii) Tendu leaves Five per cent iii) Timber obtained under a forest lease Two and one- half per cent iv) Timber obtained by any mode other than under a forest lease Two and one - half per cent v) Any other forest produce not being timber or tendu leaves Two and one - half per cent vi) Scrap One per cent: Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or of rec....
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....ction 206C to the effect that any of the goods referred to in the Table in sub-section (1) of that section are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No. 27C and shall be verified in the manner indicated therein. (2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax. (3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub- rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him. Explana....
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....e, which view of the Tribunal was confirmed by Hon'ble Madras High Court. Proceedings on the assessee for the alleged default here were initiated on 10/10/2011 and assessee had before 31/10/2012 filed the Forms. Assessment years involved were assessment year 2009-10 to 2011-12 and there was much time left with the Revenue to verify whether the buyers were indeed using the wood pulp for manufacturing, processing or producing article or thing and not for trading and to proceed against them if they had furnished false declaration. We are therefore of the opinion assessee could not have been deemed as one in default under section 206C(6D) of the Act or liable for interest under section 206(7). Orders of the lower authorities were set aside."....