2018 (7) TMI 1861

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..... Rakesh Kumar, Advocate For the Respondents : Mr. Satyakam, Addl. Standing Counsel, GNCTD. ORDER Issue notice. Mr. Satyakam, Addl. Standing Counsel, GNCTD accepts notice on behalf of the respondents. The writ petitioner seeks direction to the respondents to give effect to the C-Forms which had been used by it. The challenge in these proceedings is that neither under the Central Sal....

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....ancellation of a C-Form that has been validly issued, much less retrospectively. The only circumstance perhaps that could lead to the cancellation of a C Form is the failure by the issuing authority to notice the cancellation of the purchasing dealer's CST registration previous to the date of the sale. That would be a case of a purchasing dealer obtaining a C Form by fraudulent means concealin....

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....r held a valid CST registration, and is also issued a valid C Form then such selling dealer cannot later be told that the C Form is invalid since the CST registration of the purchasing dealer has been retrospectively cancelled. Where, a selling dealer fails to make diligent enquiries and proceeds to sell goods to a purchasing dealer who does not, on the date of such sale, hold a valid CST registra....

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....the rights of bonafide sellers in other states who proceeded on the basis of the existence of valid CST registration of the purchasing dealer on the date of the inter-se sale. That outcome is not contemplated by the CST Act and the Rules thereunder. Conclusion: 28. For the above reasons, the order passed by the DT & T cancelling the Cform issued to the petitioner in the present case with ....