TaxTMI 
TaxTMI 
2018 (3) TMI 681
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....ry to the provisions of CST Act and principles laid down in the case of Arulmurugan and Company reported in 51 STC 381 (FB) 4. Brief facts, leading to the revisions, are as follows: (i) Petitioner, M/s.East Coast Bearings, a dealer of bearings, is having its business place at No.1, Natesan Nagar, Villianur Road, Puducherry. Petitioner is a registered dealer and an assessee in the books of Commercial Tax Officer-II, Puducherry, under the Puducherry Value Added Tax Act, 2007 (Act No.9 of 2007) and Central Sales Tax Act, 1956 with TIN/CST Registration No.34230003586. (ii) For the period from July, 2007 to March, 2008, the petitioner had effected interstate sales against Form-C for the value of Rs. 57,51,534/- and effected stock transfer of goods to other States against Form-F to the tune of Rs. 10,62,750/- and since the dealer had not produced the Forms-C/F, declarations for the concessions in time, the Assessing Authority assessed the tax due on the total interstate sales turnover reported at Rs. 2,72,571, out of which, the petitioner had paid a tax of Rs. 1,72,226/- and has to pay a balance tax of Rs. 1,00,345/- as per the details of the taxable turnover determined as below....
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....had paid a tax of Rs. 1,13,594/- and has to pay a balance tax of Rs. 2,81,409/- as per the details of the taxable turnover determined as below: Inter-State sale of bearings supported by Form-C taxable @ 2% : Rs. 54,64,816/- Inter-State sale of bearings not supported by Form-C taxable @ 4% : Rs. 10,14,347/- Stock Transfer of bearings not supported by Form-F taxable @ 4% : Rs. 33,95,923/- Total & Taxable Turnover determined : Rs. 98,75,086/- Therefore, the balance tax due was determined at Rs. 1,54,547/-, out of the total due determined at Rs. 2,85,707/- by the Assessing Authority and accordingly, passed the assessment order on 02.06.2015 and sent a Notice in Form-3 to the petitioner for remittance of the same. (v) For the period from April, 2010 to March, 2011, the petitioner had effected interstate sales against Form-C for the value of Rs. 79,96,131/- and effected stock transfer of goods to other States against Form-F to the tune of Rs. 9,44,065/- and since the dealer had not produced the Forms-C/F, declarations for the concessions in time, the Assessing Authority assessed the tax due on the total interstate sales turnover reported at Rs. 3....
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....to seven years, the appellant is seeking further time on the plea that the representatives are deputed to various places to obtain the 'Form C/F' from various customers. This cannot be accepted as the reason that the submission of Form-C was beyond the control of the appellant. The A.R. has not submitted any proof in support of his statement and without establishing a fact, seeking mercy is of no avail. Considering the present fact of the case and as the A.O. has given ample opportunities nearly five to seven years to produce the C-Form declaration, I hereby refuse to accept the reasons mentioned by the A.R. and the request to give time to submit the forms as ample opportunities were given by the A.O. and the appellant assessee not able to submit / upload the declaration forms till the time of issue of assessment order / till the time of filing of the appeals. The declaration 'Forms C/F' produced for the years 2007-08, 2008-09, 2009-10 and 2010-11 during the time of hearing held on 16.09.2015 were not accepted by the A.O. as the appellant submitted the same after 5 to 7 years of time and that too at the time of hearing only. The view of A.O. is accepted. 15....
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....ise the assessment orders as per the provisions of the CST Act." (viii) Aggrieved by the common order passed by the Appellate Authority in Appeal Nos.16, 17, 18 & 19/CST/2015-16/AAC, dated 18.09.2015, dismissing the appeals and confirming the assessment proceedings dated 02.06.2015, for the assessment years, 2007-08 to 2010-11, the petitioner herein, filed appeals before the Sales Tax Appellate Tribunal, Puducherry (hereinafter referred to as The Tribunal ) in T.A.Nos.10, 11, 12 & 13 of 2016. (ix) The Tribunal, vide Common Judgement, dated 29.11.2017, dismissed all the appeals, filed by the petitioner herein. At paragraphs 7 to 15, the Tribunal, held as follows: "7. Upon perusing the pleadings, documents and hearing of arguments on both sides, the only point for determination is - Whether the Common Order passed by the Appellate Assistant Commissioner (CT), Puducherry in Appeal Nos.16,17,18 & 19/CST/2015-16/AAC, dt.18.9.2015 confirming the Order of the Commercial Tax Officer-II, Puducherry for the assessment years 2007-2008, 2008-2009, 2009- 2010 & 2010-2011 are just and legal? 8. POINT: These appeals have been preferred against the common ....
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....y ought to have considered the Declaration Forms. Therefore the Orders of the Appellate Authority have to be set aside and the appeals have to be allowed. 10. The respondent's contention is that already sufficient chances given to the appellant but he has not availed of those opportunities at the time of assessing the tax before the concerned authority and there is no valid grounds stated by the appellant before the 1st Appellate Authority to entertain the Declaration Forms as per Rule 12(7) of the CST Rule 1957 and the time limit is three months after the end of the period to which the Declaration or Certificate relates. Failure to file Declaration Forms within the prescribed time will make the dealer liable to pay tax at the scheduled rates applicable to the goods inside the Union Territory of Puducherry. After scrutinising the returns filed by the appellant, it was found that the appellant had effected interstate sales and stock transfer of goods to other States. In order to avail the concession against the interstate sales transfer, the appellant ought to have filed Declaration in Form-C/F for the years on or before 30.6.2008, 30.6.2009, 30.6.2010 and 30.6.2011 res....
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.... well as the Apex Court. However, the appellant has to state valid reasons for non-submission of the so called documents within the time. In the cases on hand, the assessment years are pertaining to 2007-2008, 2008-2009, 2009-2010, and 2010-2011. It is the bounden duty of the appellant to submit the Form-C/F declarations within the stipulated time, but in the cases on hand, the appellant has failed to submit the Form-C/F declarations within the time, that too, for the past 5 to 7 years, the appellant has not submitted the forms before the concerned authority as required by law. 13. On further careful perusal of the demand notice issued by the Commercial Tax Officer-II, Puducherry, they reveal that for some of value, the appellant had submitted the Form-C/F declarations and that too only after issuance of the demand notice by the Commercial Tax Officer-II, Puducherry. After issuance of the notice only, the appellant had filed some Form-C/F declarations for some amount and they failed to submit for the remaining amount of the concession availed under Form-C/F declaration. Then the Commercial Tax Officer had given sufficient chances to pay the balance tax due, even after that....
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....this Court is of opinion that the appellant failed to avail the opportunities given to them by the lower authorities and now without any valid reasons, they have produced copies of Form-C/F declarations before this authority. Since no sound reasons stated by the appellant to receive the documents, it is not appropriate to consider the appellant's contention. The authority below has also elaborately discussed and assessed the tax with the available records. Therefore, there is no fault on the side of the tax assessing authority. As far as the 1st appellate authority is concerned, the contention of the appellant is that, he has not considered the contention of the appellant and that they are even now ready to submit the Form-C/F declarations, but the appellant has not stated any valid reasons thereby the orders passed by the authority below and the 1st appellate authority are within the ambit of law and there is no infirmities found on the order passed by the 1st appellate authority thereby this authority has no warrant to interfere in the order of the 1st appellate authority. Therefore, this Court is of opinion that the appeals filed by the appellant have no merits at all and de....
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....n of assessment proceedings and therefore the appellate authority can enter the arena of assessment and consider the declaration forms uploaded and furnished / produced on merits as per the provisions of the Act. (viii) That the Tribunal, erred in not considering the declaration Forms already submitted on the ground that the lower authorities are within their power not to accept belated submission of declaration Forms, contrary to the principles laid down by the Constitutional Bench in the case of State of Himachal Pradesh and others Vs. Ambuja Cements reported in 143 STC 1 (SC) and several decisions of this Court. (ix) That the Tribunal, ought to have seen that the Assessing Officer has taken up the assessment at a stretch for seven assessment years viz., assessment years 2007-08 to 2013-14 and major portion of declaration Forms were filed in the course of assessment proceedings and therefore the Assessing Officer should have granted sufficient time to furnish the balance declaration forms instead of passing the assessment order in violation of principles of natural justice and fair play. (x) That the Tribunal, ought to have seen that the petitioner filed appeals against ....
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....laration relates. But, the petitioner had not complied with the mandatory provision and failed to submit the same even at the time of finalisation of assessment for the said years until 02nd June, 2015 i.e. after a period of 5 to 7 years. As such, the assessment was completed as per the provision of the CST (Registration & Turnover) Rules, and prayed for dismissal of the instant Tax Case Revisions. He also submitted that in respect of appeals filed for the assessment years 2011-12 to 2013-14, proof was filed during course of hearing of the said appeals, and for the assessment years 2007-08 to 2010-11, sufficient cause for not producing the 'C' form declaration before the Assessing Officer was not produced and hence the appellate authority dismissed the appeal. 7. Heard the learned counsel appearing for the parties and perused the materials available on record. 8. Though returns were submitted for the assessment years 2007-08 to 2010-11, the department has taken eight years to finalise the assessment for year 2007-08. No reasons have been assigned for the delay in passing assessment orders, within the financial year. 9. To ascertain the cause shown in the appeals fo....
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....y observed that the department has taken 8 years to complete the assessment for the year 2007-08, but has found fault with the dealer, for not producing 'C' declaration forms before the assessing officer. E-mails sent to the vendor are reproduced: "(1) From: East Cost Bearings ([email protected]) To: [email protected] cc:[email protected]; KarthickS@parry. murugappa.com; [email protected]; Date: Saturday, 22 November, 2014, 10.34 AM. Dear Sir, Pl. see your below mail where you have mention c form will be couriered in one week time but nothing has come. NOTE:MR.VELAYUTHAM/MR.KARTHICK, why this delay even you are keeping quite for this issue were you should be also involved, why is delay in issuing c form. Regards, Harish East Coast Bearings." (2) E-mail dated: 14.11.2014 sent by East Coast Bearings to Centralised Accounting Team - HO-EID [email protected] Dear Sir, Pl. see your below mail where you have mention c form will be couriered in one week time but nothing has come. NOTE:MR.VELAYUTHAM/MR.KARTHICK. w....
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.... the c form which we have reminded to several times pl sent us the same immediately to unable us to submit to sales tax authority immediately. Hope the above is clear. Thanks, Haris, East Coast Bearings" (11) E-mail dated 14.10.2014 sent from East Coast Bearings to Centralised Accounting Team-HO-EID: Dear sir, Still we have not received c form, our last date was 08.10.2014, which is already over pl let us know what reply we have to give to Commercial Dept by return mail. Then after we have to raise debit note for difference in amount. Pl reply. Regards - Harish, East Coast Bearings." (12) E-mail dated 30.09.2014 sent from East Coast Bearings to Centralised Accounting Team-HO-EID: Dear Sir, Still we have not received c form, our last date is 08.10.2014. Then after we have to raise debit note for difference in amount. Pl reply. Regards - Harish, East Coast Bearings." (13) E-mail dated 27.03.2015, sent from East Cost Bearings to Bayer: Dear Mr.Sathish, Greetings to you, Please refer to my visit to your office on 25.03.2015 and requested by you for All Invoices Copy from year 2005-2006 to 2013-2014. We have courier all the Invoices ....
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....tral Sales Tax (Pondicherry) Rules, 1967, requires for the purpose of these revisions are as follows: Central Sales Tax (Pondicherry) Rules, 1967: "5(1). Every dealer other than those specified in the proviso to Rule 11 of the Central Sales Tax (Registration and Turnover) Rules, 1957, registered under section 7 of the Act, shall submit a return of his transactions in the course of interstate trade or commerce or in the course of export of the goods out of the Territory of India in Form 1 together with the connected declaration form or duplicate of such form where the original has been lost and the certificates in Forms D, E-I and E-II so as to reach the assessing authority on or before the 25th of each month showing the turnover for the preceding month and the amount or amounts collected by way of tax together with a challan or a crossed cheque in favour of the assessing authority for the payment of tax due thereon under the Act." Central Sales Tax Act, 1956: "8(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 ....
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....Gujarat Ambuja Cement Ltd., and another reported in 142 STC 1 (SC), the Hon'ble Supreme Court while dealing with belated filing of statutory forms, held as follows: "It was urged on behalf of the appellant-State that declaration forms under the Central Act were not filed within the time and/or were defective. That does not in reality amount to non-compliance of a statutory provision. The respondent No.1-company was claiming exemption and, therefore, had not filed the declaration forms. Some of the forms which were filed were treated to be defective. Undisputedly, before the revisional authority a prayer was made for grant of opportunity to rectify the defects, if any. That was turned down. It is to be noted that under Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 (in short the `Registration Rules') the declaration form can be filed at a subsequent point of time and not necessarily along with returns. On an application being made before the Assessing Officer the exemption can be granted. The object of the Rule is to ensure that the assessee is not denied a benefit which is available to it under law on a technical plea. The Assessing Off....
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....is Court, at Paragraphs 12 and 13, held as follows: "12. The ratio in the above-said decision will enure to the benefit of the assessee. It is to be noted that the approach of the Department should be to ensure that what the assessee is rightfully entitled to should be extended to the assessee without harping on technicalities. Accordingly, we are inclined to set aside the orders of the Tribunal and remand the matters back to the Assessing Authority for passing fresh orders. 13. In the result, the impugned orders of the Tribunal stand set aside and the above Tax Case (Revisions) stand allowed. The Assessing Officer is directed to proceed with the assessment after receiving the necessary statutory declarations and complete the assessment on merits. No costs. The petitioners are directed to submit the necessary statutory declaration forms before the Assessing Officer along with a copy of this order." 19. In M/s.K.S.B.Pumps Ltd., v. State of Tamil Nadu [Tax Case (Revision) No.87 of 2015, dated 30.09.2015], C-Form declaration to an extent of Rs. 19,98,976/-, was not submitted, for the assessment year 2000-01, within five years from the date of the original assessme....